China’s factory activity contracts in August despite an uptick in export demand

China’s factory activity improved marginally in August as export demand remained robust, though overall manufacturing still was in a contraction. China’s official manufacturing purchasing managers’ index, or PMI, recovered slightly to 49.8 in August from 49.2 in July, according to the National Bureau of Statistics. The report yesterday was better than what economists had expected. PMI readings, based on monthly surveys of companies, are measured on a scale of 0 to 100. A reading above 50 indicates an expansion, while below 50 reflects a contraction. “Manufacturing activity rebounded thanks to strong export demand,” Nguyen Hoang Nam, a China…