Tourists are seen at a cafe in Bamei Village of Guangnan County, Wenshan Zhuang and Miao Autonomous Prefecture, southwest China's Yunnan Province, Aug. 25, 2025. In recent years, Bamei Village has developed local tourism utilizing its karst landscapes and cultural resources. A tourist resort which helps boost the local service sector has taken shape. (Xinhua/Gao Yongwei)

The purchasing managers' index (PMI) for China's non-manufacturing sectors reached 50.3 in August, up 0.2 points from the previous month, indicating continued expansion, while the services sector also continued to grow, with its sub-index standing at 50.5 in August, according to National Bureau of Statistics (NBS) data released on Sunday.

Meanwhile, the PMI for the manufacturing sector rose to 49.4 in August, up 0.1 point from a month earlier, showing signs of improvement as emerging industries continued to gain traction and overall business confidence further improved, according to NBS data.

A PMI reading above 50 indicates expansion, while a reading below 50 suggests contraction.

Within the non-manufacturing sector, business activity indices in sectors related to capital market services, railway transport, air transport, telecommunications, broadcasting and television and satellite transmission services were all above 60, demonstrating a relatively high level of activity, NBS data showed. Especially, business activity indices related to capital market services remained above 70 for the second consecutive month.

NBS statistician Zhao Qinghe said that the improvement reflected accelerated production, the growing role of high-tech industries, and more positive business expectations.

In August, China's composite PMI stood at 50.5, up 0.3 points from July, remaining above the expansion threshold, indicating faster growth in production output and business activity, Zhao noted.

Chinese analysts said that the PMI readings indicated a recovery in manufacturing and services activities although more pressure is to be expected in the remaining months of the year. However, China has adequate policy tools to boost domestic demand and ensure the sound development of the economy, they noted.

Wang Qing, chief macroeconomic analyst at Golden Credit Rating International, told the Global Times on Sunday that the easing of disruptive weather in August, the resumption of funds for trade-in programs and the further suspension of certain tariffs between China and the US were the main positive factors driving the PMI data up.

"The subindex for high-tech manufacturing rebounded significantly, indicating that Chinese technology sectors - featuring the growth of new quality productive forces and driven by strong market demand and policy support - both lead in growth speed and have great resilience to shocks," Wang said.

More fiscal and monetary support measures, such as childcare subsidies and a possible further reduction in the reserve requirement ratio by the central bank, will buttress the economy against slowing external demand and ensure that full-year growth is in line with the target, noted Wang.

Wu Wei, an analyst at the China Federation of Logistics and Purchasing (CFLP), which jointly announced the PMI data with the NBS, wrote in a research note posted on the CFLP's website on Sunday that with the steady growth momentum in the non-manufacturing sector, corporate optimism regarding market prospects is growing.

"It is anticipated that in September and the fourth quarter, driven by policy measures and the market's self-recovery, domestic demand potential will continue to be unleashed," Wu said, noting that efforts should be made to stabilize existing demand while fostering new effective demand, thereby strengthening the endogenous drivers of economic growth.

A number of indicators were released lately that highlighted growth momentum.

In the first seven months of this year, China's gross social logistics value rose 5.2 percent year-on-year to reach 201.9 trillion yuan ($28.22 trillion), driven by robust demand in high-end manufacturing, and green and low-carbon industries, CFLP data showed on Thursday.