Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

China’s Official PMI Unexpectedly Rises in August, but New Export Orders Contract

Published 08/31/2018, 01:53 AM
Updated 08/31/2018, 01:53 AM
© Reuters.  Growth in China’s manufacturing sector unexpectedly rose in August

© Reuters. Growth in China’s manufacturing sector unexpectedly rose in August

Investing.com - Growth in China’s manufacturing sector unexpectedly rose in August as the official Purchasing Managers’ Index (PMI) jumped to 51.3, official data on Friday. Analysts previously expected the number to drop to 51.0 from July’s 51.2.

The service PMI also rose to 54.2 from 54.0 in July, the National Bureau of Statistics said.

A reading above 50 indicates expansion, while a reading below that signals contraction.

However, some analysts remained concerned over China’s economic conditions as data also showed export orders, an indicator for future activity, contracted for a third straight month. The sub-index slipped to 49.4, the lowest since February, from 49.8 in July.

Statistics bureau official Zhao Qinghe, in a statement accompanying the data, said the latest data showed China’s manufacturing sector is continuing to expand at a steady pace, although he admitted international trade concerns and “other external uncertainties” are hurting exports and imports.

The official PMI focuses on large, state-owned companies while another set of private manufacturing PMI readings, due Monday, focuses on small and medium-sized enterprises.

In July, both official and private PMI reading by Caixin and IHS Markit fell, with the private manufacturing index dropping to an eight-month low due to a decline in export orders.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.