China manufacturing: ‘bombed-out’ exports in August see manufacturing stay in contraction for fifth straight month
- China’s official manufacturing purchasing managers’ index (PMI) rose to 49.7 in August from 49.3 in July, while the non-manufacturing gauge fell slightly to 51
- Persistent economic downturn prompts Beijing to vow more support will come, a month after unveiling measures to revive the private sector and loosen the reins on real estate
China has vowed to further step up funding support for the private sector as manufacturing activities showed little sign of strengthening this month, despite Beijing having ratcheted up support for its ailing economy since late July.
Within the official manufacturing PMI, the new-orders subindex jumped into expansionary territory as it reached 50.2, up from 49.5 a month earlier, while the new-export-orders subindex remained low at 46.7 in August, up slightly from 46.3 in July.
“This must be mainly domestic orders, as the export-orders series remains bombed out. But that, at least, provides some encouragement about the near-term outlook,” said Robert Carnell, an economist with investment bank ING.
Manufacturers’ business expectations, however, improved slightly last month, with the number rising to 55.6 from 55.1 in July.
