China’s manufacturing sector strengthened midway through the third quarter as operating conditions improved, according to RatingDog and S&P Global. The headline seasonally adjusted Purchasing Managers’ Index (PMI) rose to 50.5 in August from 49.5 in July, signalling a return to growth.

Manufacturing output expanded on the back of rising new orders, while the contraction in export business eased. Increased new work drove purchasing activity and inventories higher, alongside a rise in unfinished business. Business confidence also picked up, although firms stayed cautious on staff hiring.

China’s manufacturing sector returned to growth in August, with the PMI rising to 50.5, its highest in five months, as per RatingDog and S&P Global.
Output and new orders expanded, driven by firmer domestic demand, while export declines eased.
Purchasing and inventories rose, though firms shed staff for a fifth month.
Input costs climbed at the fastest pace in nine months.

On the price front, average input costs climbed at the fastest pace in nine months, while selling prices stabilised, ending an eight-month streak of discounting. Rising above the 50 no-change threshold in August, the latest figure signalled that manufacturing sector conditions improved midway through the third quarter of the year, S&P Global said in a press release.

Although marginal, the rate of improvement was the quickest in five months. Rising new orders supported a renewed expansion of manufacturing output in August. This marked the second time in the past three months in which output has increased, though the upturn was only marginal. Better underlying demand conditions and successful promotional efforts underpinned the latest rise in new orders, according to panellists.

Though modest, the rate of new order growth was the quickest seen since March. Companies signalled that the improvement in sales was largely driven by firmer domestic demand, as new export orders fell slightly.

Stronger inflows of new orders also led to a renewed accumulation of backlogged work in August. The rate at which unfinished business increased was the quickest in six months. Despite greater capacity pressures, manufacturers remained cautious with regards to their staffing levels, opting instead to shed staff for a fifth consecutive month.

Purchasing activity increased for a second consecutive month amid higher new orders and production. Anecdotal evidence suggested that some Chinese manufacturers were keen to stockpile in the latest survey period. Holdings of raw materials and semi-finished goods rose at the quickest pace since November 2020.

Stocks of finished goods also accumulated midway through the third quarter. This was attributed to both growth in production and delays in outbound shipments. At the same time, lead times for inputs continued to lengthen in August, albeit only fractionally, amid reports of shipping delays and logistics constraints.

Prices data showed that average input costs rose for a second successive month in August. The rate of inflation was the steepest since November 2024 but remained below the series average. Higher raw material costs were cited as a key reason for the latest increase in expenses. To help cope with rising costs, some manufacturers raised their output charges while others were limited in their ability to pass on higher expenses due to intense competition.

As a result, average selling prices were unchanged in August following an eight-month period of decline. On the other hand, export charges continued to increase on the back of rising transport costs.

Overall, sentiment regarding the one-year outlook for output in the Chinese manufacturing sector remained positive in August. Goods producers were the most upbeat since March amid hopes that economic conditions will improve, and that company expansion plans will help to drive new sales in the next 12 months.

“The RatingDog China Manufacturing PMI rose to a five-month high of 50.5 in August, indicating an improvement in China’s manufacturing conditions and a return to expansion. However, the latest upturn resembled a breath of relief rather than a sustained rally,” said Yao Yu, founder at RatingDog. “It’s positive to see output bounce back above the 50 no change mark after July’s dip, and new orders picked up, pushing inventories of raw materials and finished goods higher.”

“New export orders are still in contraction, but the pace of decline has eased. That’s encouraging, yet we shouldn’t get carried away, because external demand looks partly pulled forward while domestic demand stays soft, so the upside to output may be limited unless domestic demand firms up,” added Yu. “Besides, input prices continued to rise under the ‘Anti-involution’ policy backdrop, and those upstream increases are finally showing up in output prices, breaking an eight-month streak of falling charges. Still, profit trends interpreted from the PMI data showed only a slight recovery and remain under pressure overall.”

“Notably, the manufacturing sector is helping the recovery, but this rebound is patchy. With weak domestic demand, potentially overstretched external orders, and slow profit recovery, the durability of the improvement depends on whether exports truly stabilize and whether domestic demand can pick up pace,” Yu said.

Fibre2Fashion News Desk (SG)

Jean-Marc Bellaiche took over as president of French department store group Le Printemps in 2020, and since then he has transformed the business. He introduced a new livery, revamped the assortment, opened a majestic new branch in New York, and reorganised the group while managing the post-pandemic period. FashionNetwork.com has now learnt that Bellaiche’s tenure will end on September 15.

In an internal memo to staff, whose content was gleaned by FashionNetwork.com, Bellaiche announced his departure from Le Printemps, which was bought by Qatari investment fund Disa in 2013.

“After mature reflection, and with the feeling of having accomplished my mission, I have decided not to renew this mandate upon its expiry,” wrote Bellaiche, listing the changes he has overseen at the group. “It was hard to take this decision, given how attached I feel to this fine institution and to you all, the women and men who are its strength, but I think the time has come for me to devote myself to a new project, whose details I will share in future,” he added.

From September 15, Le Printemps’s executive committee will take charge ad interim, while the group’s supervisory board has started the search for a new president.

“After his five years as president of the Printemps group, we would like to thank Jean-Marc Bellaiche for his commitment and the transformation he successfully executed within the group,” said the supervisory board. 

Bellaiche replaced Paolo de Cesare at the head of Le Printemps in September 2020. Under his leadership, the group underwent a major makeover, a mix of organisational streamlining, market repositioning and internationalisation drive.

Bellaiche began by taking a series of measures to make the group profitable again: he decided to close down unprofitable branches, like Italie 2 in Paris and the Strasbourg branch, and restructured the group’s organisation.

After laying this foundation, he made changes to the senior executive team, bringing more women in, he gave new impetus to the group’s CSR strategy, adopting the slogan Unis vers le beau responsable (Together for positive engagement), and made the department store’s brand identity clearer. Le Printemps has revamped its visual identity and brand concepts, and given a new look to its own brands by launching Saison 1865. Above all, Bellaiche has overhauled the group’s customer strategy, targeting both a French and international clientèle, and explored the new digital landscape, as well as focusing on the personal shopper service. In his letter to the staff, Bellaiche underlined that online sales account for 10% of Le Printemps’s revenue, and for 12% of Citadium’s.

He has also opened new international prospects for the group, inaugurating a Printemps in Doha in 2022. His main coup was undoubtedly opening a New York flagship in early 2025. Earlier this year, Bellaiche said that the group’s operating income had been back in positive territory for two fiscal years. However, the group’s bottom line is still burdened by its indebtedness, notably the liabilities incurred to face the challenges of the 2020-21 pandemic period.

“The transformations that occurred in the last five years have been extraordinary, and will leave a strong mark on the group and myself, both as a director and a person,” wrote Bellaiche. “I can’t begin to list all the amazing achievements of the last few years, nor all the KPIs that we have together turned positive despite the very strong headwinds linked to the economic, geopolitical and industry situation. I wanted to thank you all, from the bottom of my heart, from the stores’ sales staff to the digital, headquarters, group and support teams, and of course our strong, cohesive Executive Committee, for your commitment, your passion and simply for the pleasure it has been to work alongside you. I would also like to thank the members of the supervisory board, with whom cooperation in the past five years has been extremely smooth. Finally, I would like to thank the entire Le Printemps ecosystem, and especially the CEOs of the brands with which we have reached such great milestones,” he concluded.

This year, Le Printemps’ boulevard Haussmann flagship in Paris is celebrating its 160th anniversary. The group reported a revenue of €1.7 billion in 2018, and has not provided more up-to-date results. It has 3,000 employees, between the 21 Printemps department stores, nine Citadium stores, the Place des Tendances and Made in Design e-shops, and its administrative and logistics staff.