The Caixin’s Chinese manufacturing PMI has fallen nine tenths in August, standing at 49.5 points after posting 50.4 in July. The result improves market expectations, whose consensus expected a slight decline, to 50.2 points.
The indicator enters contraction territory, falling to 49.5 points and obtaining its worst figure in three months. According to him Dr Wang Zhesenior economist at Caixin Insight Group, “a resurgence of covid infections and the prolonged heat wave, weighed on the manufacturing sector“.
“Employment at manufacturers remained weak. The employment sub-index contracted for the twelfth time in the last 13 months, as companies cut staff to save costs. The three types of goods producers – those who make consumer goods, investment and intermediate goods – saw various degrees of downsizing in August, with investment goods manufacturers seeing the largest downsizing,” Zhe added.
Source: Fx Street
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