China’s economic recovery continues as services sector grows at fastest pace in over two and a half years in August

The official manufacturing purchasing managers’ index (PMI) was 51.0 for August, with a reading above 50.0 signifying growth in factory output

Non-manufacturing PMI was 55.2, with both surveys now reporting positive outlooks for six consecutive months

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China’s official manufacturing purchasing managers’ index (PMI) for August stood at 51.0, with a reading above 50.0 suggesting growth in factory output. Photo: Xinhua

Published: 9:16am, 31 Aug 2020Updated: 10:15am, 31 Aug 2020

China’s non-manufacturing sector expanded as its fastest pace since January 2018 last month, highlighting continued recovery in the economy from the coronavirus damage early in this year.

The official non-manufacturing purchasing managers’ index (PMI), released by the National Bureau of Statistics on Monday, was 55.2 for August, up from 54.2 in July and above analysts’ expectations that it would remain unchanged at 54.2.

This survey takes the mood among firms in the services and construction sectors, with the rate of expansions the fastest since it grew by 55.3 in January 2018.

Within the non-manufacturing index, sentiment in the construction sector dropped to 60.2 in August from 60.5 in July, while sentiment in the services sector rose to 54.3 from 53.1.

China’s official manufacturing PMI, meanwhile, fell slightly to 51.0 in August. This was below analysts’ expectations, with the median result of a Bloomberg survey predicting it would stay unchanged from July at 51.1.

A reading above 50 means growth in sector activity, while a reading below 50 means contraction. The higher the reading above 50, the faster sector growth.