According to the latest data released on Friday, the Caixin Purchasing Managers’ Index (PMI) of Chinese manufacturing returned to the path of expansion, standing at 51.0 in August, compared to the contraction of 49.2 in July. The data surprised the market, which had expected a reading of 49.3, to the upside.
Main data (via Caixin)
Operating conditions improve for manufacturing in August.
New increases in production and new companies.
Input costs rise for the first time since February.
“The slight rise in prices cushioned the pressure of deflation, logistics remained smooth, stocks of raw materials fell and manufacturers remained optimistic, albeit to a limited extent,” said Wang Zhe, an economist at Caixin Insight Group.
“Looking forward, the seasonal effects will gradually recede, but the problem of insufficient domestic demand and weak expectations may form a vicious circle for longerWang added.
On Thursday, China’s National Bureau of Statistics released the country’s official Manufacturing Purchasing Managers’ Index (PMI), which improved to 49.7 in August, from a contraction of 49.3 in July. Market consensus was for a figure of 49.4.
Source: Fx Street
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