China: Manufacturing PMI inches up in August
The manufacturing purchasing managers’ index (PMI) published by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP) rose from 51.2% in July to 51.3% in August. The print came in above market expectations of a dip to 51.0%. The index remains above the 50% threshold that separates expansion from contraction in the manufacturing sector, where it has been for nearly two years.
August’s small increase reflected an improvement in output, which also boosted job creation. Inventories, however, deteriorated in August, underlying that demands remains weak. Moreover, new orders fared worse, suggesting that August’s improvement could be short-lived. New export orders fell to a six-month low in August, reflecting the rise in trade tensions with the United States, while input prices rose markedly in the same month due to high commodity prices.