BEIJING: China’s manufacturing activity contracted again in August, adding to the gloomy outlook for the world’s second-largest economy.

       The official manufacturing purchasing managers’ index rose slightly to 49.7 last month, according to the National Bureau of Statistics, in contraction for a fifth month but still an improvement over the 49.3 reading in July. That was better than the median estimate of 49.2 in a Bloomberg survey of economists.

       The non-manufacturing gauge – which includes activity in the construction and services sectors – fell to 51, below the estimate of 51.2. The 50 mark separates expansion from contraction compared to the prior month.

       Economic recovery has weakened after a burst of activity in the first quarter of this year, with a prolonged property slump weighing on sentiment.

       Manufacturers have been struggling for months because of a slump in global demand and subdued domestic spending. Deflation has put pressure on industrial profits as well, with data showing a 6.7% contraction in July. — Bloomberg