China: NBS General PMI Rises from 3-Month Low.

China’s NBS Composite PMI Output Index increased to 50.5 in August 2025 from July’s three-month low of 50.2, pointing to modest growth in overall private sector activity. The service sector rebounded after hitting an eight-month low in July, while manufacturing remained in contraction, though the pace eased. In early August, the U.S. and China extended their tariff truce for 90 days, keeping 30% duties on Chinese exports to the U.S. and 10% on American goods to China. At the same time, Beijing has stepped up consumer subsidies to spur domestic spending, but a prolonged property slump continues to weigh on household confidence. Real estate is still a major source of household wealth in the mainland, but mortgage demand has collapsed. Meantime, July bank lending shrank for the first time in two decades. Industrial firms are also under pressure, with profits falling for the third month. Weak demand and persistent deflation are squeezing margins, adding urgency to calls for more stimulus.