Caixin Manufacturing PMI (we go the official PMI survey results earlier): 47.3

  • the 'flash' reading was 47.1 (against expected 48.2)
  • prior was a 2-year low at 47.8

The manufacturing PMI showing an improvement over the earlier flash reading, but down on the month and still well in contraction

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Caixin Compiste PMI, 48.8

  • prior was 50.2

Caixin Services PMI, 51.5

  • prior was 53.8

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Key Points from Markit:

  • Output contracts at quickest rate in 45 months as new business falls solidly
  • Purchasing activity declines at sharpest rate since March 2009
  • Input costs and output charges both fall at marked rates

Says Dr. He Fan, Chief Economist at Caixin Insight Group:

  • The final Caixin China Manufacturing PMI for August continued to retreat, with sub-indices signalling continued weak demand in the markets for goods and factors of production.
  • Recent volatilities in global financial markets could weigh down on the real economy, and a pessimistic outlook may become self-fulfilling.
  • Macroeconomic regulations and controls must continue and fresh reform measures must be introduced.
  • Finetuning should go hand in hand with speedier implementation of structural reform in order to release the full potential of growth and lead the market to confidence.