Smaller Chinese manufacturers hit hard by trade war in August, new data shows
Latest purchasing managers survey shows growth in business activity has slowed to a 14-month low
Smaller Chinese manufacturers continue to be the most vulnerable segment of the world’s second-largest economy, new data shows, with growth in their business activity slowing to a 14-month low in August amid Beijing’s drive to reduce financial risks and the trade war with the United States.
Caixin’s monthly purchasing managers survey showed that export orders shrank for a fifth straight month and employers continued to cut staff.
This result contrasted with the official purchasing managers index released on Friday, which rose 0.1 point to 51.3. The official survey, conducted by the National Bureau of Statistics, focuses on larger manufacturing firms, many of them state-owned, and the rebound suggested the government had scored some success in its effort to stabilise the economy.
Analysts said the smaller firms would continue to be weighed down by a lack of access to credit and the trade war’s impact.