A gauge of Chinese manufacturing activity improved in August but remained in contraction territory as the country’s COVID-19 outbreaks combined with energy shortages from a heat wave and drought disrupted factory operations.
In particular, the official manufacturing PMI index climbed to 49.4 units in August from 49.0 units in July, as announced by the country’s statistical office. The reading beat analysts’ estimates of 49.2 points in a Wall Street Journal poll.
The index, however, remained below the 50-point level that separates expansion from contraction in business activity.
A gauge of foreign orders contracted for a 16th consecutive month in August as demand remained weak amid a slowing global economy. Manufacturing output was unchanged at 49.8, while the index for total new orders strengthened to 49.2 from 48.5 in July.
At the same time, the non-manufacturing PMI fell to 52.6 in August from 53.8 in July, as announced by the statistical office.
The sub-index for services sector activity fell to 51.9 in August from 52.8 in July.
Source: Capital
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