Contrasting Manufacturing Trends: China's Unexpected Growth and Australia's Resilience

Chinese manufacturing activity unexpectedly grew in August, with the Caixin PMI reading 51.0, its highest level since February. The growth was driven by improving local demand and an uptick in new orders, offsetting a slowdown in overseas demand. However, analysts warn that the Chinese economy still faces pressure, particularly due to worsening conditions in its biggest export markets. The Caixin survey focuses on smaller, private enterprises and contrasts with the official reading, which showed a fifth straight month of contraction in the manufacturing sector. Despite recent stimulus measures, the Chinese economy is expected to face sustained headwinds in the coming months.