Sub-indexes on production and new orders returned to expansion
China’s official manufacturing purchasing managers’ index recovered to 49.8 in August from 49.2 in July, the National Bureau of Statistics reported Monday. The figure remained below the 50-point threshold that separates expansion from contraction, though the rate of decline moderated and beat analyst expectations.
PMI readings are based on monthly surveys of companies and are measured on a scale of 0 to 100, with a reading above 50 indicating expansion and below 50 indicating contraction.
Several sub-indexes returned to expansion in August. The production sub-index advanced to 50.4 from 49.9 in July. The new orders sub-index recovered to 50.6 from 48.5, while new export orders improved to 50.1 from 49.6.
“Manufacturing activity rebounded thanks to strong export demand,” Nguyen Hoang Nam, a China economist at Capital Economics, wrote in a research note Monday.
The August data reflected a split between export-oriented sub-indexes, which strengthened, and the broader manufacturing sector, which remained in contraction.