China's manufacturing activity improved in August but sales weakened amid a worsening tariff war with Washington, a survey showed Friday.
The China Federation of Logistics & Purchasing said its monthly purchasing managers' index rose to 51.3 from July's 51.2 on a 100-point scale on which numbers above 50 show activity expanding. Components for new orders and exports declined, suggesting demand is weakening.
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"The trade war's impact increasingly appeared in the data," said Citigroup economists in a report.
Washington and Beijing have imposed tariff hikes on $50 billion of each other's goods. President Donald Trump is poised to impose penalties on an additional $200 billion of Chinese imports as early as next week. Beijing has said it will retaliate.