China’s small factory activity strengthened in August thanks to rise in production, new orders, export sales

Caixin/Markit manufacturing purchasing managers’ index (PMI) rose to 53.1 in August from 52.8 in July, with a reading above 50 signifying growth

The survey followed official PMI data released on Monday which again showed a positive outlook for larger Chinese manufacturers

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Caixin/Markit manufacturing purchasing managers’ index (PMI) rose to 53.1 in August from 52.8 in July, with a reading above 50 signifying growth. Photo: AP

Published: 9:57am, 1 Sep 2020Updated: 11:14pm, 1 Sep 2020

China’s manufacturing sector showed further recovery in August, with production, new orders and also export sales improving in a new survey released on Tuesday.

The Caixin/Markit manufacturing purchasing managers’ index (PMI) rose to 53.1 last month from 52.8 in July, beating median expectations in a Bloomberg survey of 52.5, and remaining in positive territory for the fourth consecutive month.

It was also the biggest rate of expansion since January 2011.

The survey focuses on production at smaller Chinese factories. The 50-point mark separates contraction from growth.

“The index has now risen for four months in a row, reflecting that the manufacturing sector continued to recover from the impact of the pandemic, and that the momentum of the recovery remained strong,” said Wang Zhe, senior economist at Caixin Insight Group.

The post-epidemic economic recovery in the manufacturing sector continued. Supply and demand expanded with the pickup in overseas demand

Wang Zhe

On Monday, the official manufacturing PMI which focuses on larger state-owned firms, 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, although it still remained in positive territory for a sixth straight month.