Daily Management Review

Chinese manufacturing PMI unexpectedly reaches February 2018 peak


The Purchasing Managers Index (PMI) in China’s manufacturing sector rose from 50.4 points to 51.4 points in August.

Chris from Shenzhen, China
Chris from Shenzhen, China
Analysts polled by Reuters, in contrast, predicted a decrease to 50.2 points.

The indicator below 50 points reflects a decrease in activity, above - an increase in activity. The September activity growth, although moderate, was the highest since February 2018.

The growth of new orders in September accelerated to the maximum since March 2018. This was facilitated by stronger domestic demand, while new export orders continued to decline. Companies have often noted that the ongoing trade war between the US and China continues to negatively impact export sales.

Amid the general growth of new orders, companies increased production at the fastest pace since August 2018.

Employment in China's manufacturing sector is staying unchanged for the second month in a row.

Optimism regarding business prospects for the coming year in September remained relatively weak. Study participants expressed concerns about future trading conditions.

Official data released earlier showed that manufacturing activity declined for the fifth consecutive month in September, although the decline was less sharp than a month earlier. China's official manufacturing sector PMI rose to 49.8 from 49.5 points in August. Analysts polled by Reuters expected the PMI to remain at the August level.

source: reuters.com