The latest data out of China indicates that factory activity remained weak for the fifth month in a row in August.

The National Bureau of Statistics says the manufacturing Purchasing Managers' Index stood at 49.7.

The figure is up 0.4 percentage points from July. But it is still below the 50-mark that separates contraction from growth.

The PMI is based on a survey of 3,200 manufacturers.

Chinese companies saw both weak exports and slow recovery in domestic demand, as the real estate slump and employment insecurity dragged on.

The PMI for non-manufacturers, including those in the service sector, came in at 51.
It was the eighth month in a row that the figure indicated expansion, although it was down 0.5 points from July.

The Chinese government aims to give domestic demand a boost, as economic recovery remains slow. And the central bank implemented further monetary easing in August. Still, there is growing uncertainty over the prospects of the economy.