Caixin China manufacturing PMI rises to 53.1 in August

SINGAPORE (ICIS)–Caixin’s China general purchasing managers’ index (PMI) rose to 53.1 in August from 52.8 in July on the back of higher new export orders, the Chinese media firm said on Monday.

A PMI reading above 50 indicates an expansion in the manufacturing economy.

China’s official PMI slipped to 51.0 in August from 51.1 in July.

The Caixin general PMI index has now risen for four months in a row, reflecting that the manufacturing sector continued to recover from the impact of the pandemic.

The gauge for new export orders entered expansionary territory for the first time this year, due mainly to the slowing spread of the pandemic overseas, according to Caixin.

“Supply and demand expanded with the pickup in overseas demand,” said Wang Zhe, senior economist at Caixin Insight Group.

“Macroeconomic policy supports are essential, especially when there are still many uncertainties in domestic and overseas economies. Relevant policies should not be significantly tightened.”

Interactive by Nurluqman Suratman