China's factory activity unexpectedly expands to 51.0 in August amid efforts from Beijing

[beijingwalker]

China's factory activity unexpectedly expands to 51.0 in August amid efforts from Beijing​

Aug. 31, 2023 11:49 PM ET

• The Caixin China General Manufacturing PMI rose to 51.0 in August 2023 from 49.2 in July, beating market estimates of 49.3, marking the strongest pace of expansion in factory activity since February, also marking the fifth time of increase since the start of the year amid multiple efforts from Beijing to revive a weakening post-pandemic recovery.
• Both output and new orders returned to expansion while employment gained for the first time in 6 months.
• Buying levels also grew, but to a limited degree partly due to higher costs of raw materials.
• Still, Caixin analysts noted that the Chinese economy still remained under pressure, particularly given that worsening conditions in the country’s biggest export markets presented a bleak outlook for demand.
• “Seasonal impacts will gradually subside, but the problem of insufficient internal demand and weak expectations may form a vicious cycle for a longer period of time. Combined with the uncertainty in external demand, the downward pressure on the economy may continue to increase,” Wang Zhe, Senior Economist at Caixin Insight Group wrote in a note.

China's factory activity unexpectedly expands to 51.0 in August amid efforts from Beijing

The Caixin China General Manufacturing PMI rose to 51.0 in August 2023 from 49.2 in July, beating market estimates of 49.3, marking the strongest pace of expansion in factory activity...

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