China August PMI Signals Stabilisation Amid Contraction

A journalist demonstrated how AI firms are acquiring old and rare books for training by recording a shipment with an AirTag, revealing destruction and scanning at an Amazon warehouse as part of a broader debate over preserving printed materials. China’s official factory PMI for August stood at 49.8, signaling another month of contraction, though with pockets of resilience as production and new orders edge above 50 and high-tech manufacturing remains a bright spot. The broader picture remains weak domestic demand and a protracted real estate slump, with industrial profits cooling and overall growth slowing to around 4.3% in Q2. The high-tech segment, including AI hardware, diverges from the broader economy, sustaining expansion while consumer-focused sectors lag. The Australian dollar is influenced by the RBA’s rate stance, China’s economic health, iron ore prices, and risk sentiment, with higher rates supporting the AUD and iron ore remaining a key export driver despite a sluggish domestic backdrop. Across China, new export orders turned positive, underscoring that external demand is helping stabilize some manufacturing activity even as the economy contends with structural weaknesses.