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)

Giorgio Armani, the most influential Italian fashion designer in history and the defining tailor of his time, has passed away. He was aged 91.

 
“With infinite sorrow, the Armani Group announces the passing of its creator, founder, and tireless driving force: Giorgio Armani,” the company said in a release.
 
Il Signor Armani, as he was always respectfully and admiringly called by employees and collaborators, passed away peacefully, surrounded by his loved ones. Indefatigable to the end, he worked until his final days, dedicating himself to the company, the collections, and the many ongoing
and future projects, it added.

“Over the years, Giorgio Armani has crafted a vision that expanded from fashion to every aspect of life, anticipating the times with extraordinary clarity and pragmatism. He has been driven by relentless curiosity and a deep attention to the present and to people. Along this journey, he established an open dialogue with the public, becoming a beloved and respected figure for his ability to connect with everyone,” the Milan based house said.
 
The funeral chamber will be set up from Saturday, September 6th to Sunday, September 7th, and will be open from 9 a.m. to 6 p.m., in Milan, at Via Bergognone 59, inside the Armani/Teatro.
 
In accordance with Mr. Armani’s explicit wishes, the funeral will be held private.
 
Always mindful of the needs of the community, he has been active on many fronts, especially in support of his beloved Milan.

Giorgio Armani is a company with fifty years of history, built with emotion and patience. Giorgio Armani always made independence – of thought and action – his hallmark. The company is, now and always, a reflection of this spirit. His family and employees will carry the Group forward in respect and continuity of these values.
 
“In this company, we have always felt like part of a family. Today, with deep emotion, we feel the void left by the one who founded and nurtured this family with vision, passion, and dedication. But it is precisely in his spirit that we, the employees and the family members who have always worked alongside Mr. Armani, commit to protecting what he built and to carrying his company forward in his memory, with respect, responsibility, and love,” the statement from his employees and his family read.