Business News

A non-public survey exhibits that China's manufacturing business expanded on the quickest price in practically a decade in August

The results of a private survey on Tuesday showed that China's manufacturing activity expanded at the fastest pace in nearly a decade in August.

The purchasing managers' index (PMI) for the Caixin / Markit manufacturing sector was 53.1 in August, compared with 52.8 in July.

Economists polled by Reuters had expected the PMI for the Caixin / Markit manufacturing sector to be 52.7.

PMI values ​​above 50 indicate expansion, while values ​​below this level indicate contraction. The readings are sequential and indicate a monthly expansion or contraction.

The expansion in August was the fastest since January 2011, Caixin and IHS Markit said in their joint report.

"Manufacturing demand and supply continued to recover, and overseas demand began to rise," wrote Wang Zhe, senior economist at Caixin Insight Group.

In August "the sub-indices for production and incoming orders again reached their highest level since January 2011." The meter for new export orders also entered the expansion area for the first time this year as the coronavirus outbreak slowed overseas, Wang added.

China's manufacturing sector has been hit as factories temporarily closed earlier this year amid large-scale lockdowns from the coronavirus pandemic. Global demand was also hit as the virus spread around the world.

However, the latest data shows signs that China's economy is recovering from the pandemic.

On Monday, the Chinese Bureau of Statistics reported that the official PMI for the manufacturing sector for August was 51.0, slightly missing analysts' expectations for a value of 51.2.

The official PMI survey usually interviews a large proportion of large corporations and state-owned companies. In comparison, the private Caixin and IHS Markit surveys show a greater mix of small and medium-sized businesses.

This is the latest news. Please try again.

Related Articles