Manufacturing activity rate soars

Shanghai Newspaper_Manufacturing rate soars high

Firms register the fastest increase in five months allowing the manufacturing activity to accelerate in August.

Marikit, a Caixin magazine and research firm revealed that the Caixin China General Manufacturing Purchasing Managers’ Index, soared up to 50.4 in August compared to the 49.9 register in July.

Gauge explains that a reading above 50 signals growth, while below 50 points to contraction.

China’s official manufacturing PMI, released on Saturday, edged down slightly to 49.5 in August from 49.7 in the previous month. The increase signals the improvement in the overall health of the manufacturing sector

It was earlier revealed that it was the quickest increase in production in five months. The expansion contrasted with broadly unchanged output in July and a reduction in June, contributing to the first rise in stocks of finished goods to-date in 2019.

The declining foreign demand amid the trade dispute between the US and China is reflected in the gauge for new export orders, causing it to remain in contractionary territory and sank to its level in August.

But what caused an offset is the improved domestic demand to reduce export sales. The subindex for new orders stayed in expansionary territory but inched down, suggesting flat demand for manufactured products.

Meanwhile further increase in work backlogs contributed to the capacity pressures that persisted in August.