This is the privately conducted survey, into expansion!
50.4 in August, a beat
- expected 49.8, prior 49.9
more to come
Over the weekend we got the official PMIs:
Comments for the report:
- subindex for new orders stayed in expansionary territory, but it inched down, suggesting flat demand for manufactured products
- new export orders remained in contractionary territory and fell to the lowest level this year in August, reflecting declining foreign demand amid an intensifying trade dispute between China and the U.S.
- output subindex stayed in positive territory and rose further, pointing to increased production activity
- employment subindex jumped to a level only marginally lower than the 50-point mark that divides expansion from contraction, showing a relative improvement in labor market conditions.
- subindex for stocks of purchased items fell further into negative territory, reflecting manufacturers' growing reluctance to replenish inventories
- subindex for suppliers' delivery times dropped further into decline, indicating that they have delayed deliveries even longer
- measure for stocks of finished goods rebounded into positive territory, suggesting growing inventories amid the improved production environment. However, it remains to be seen whether production will continue to improve.
- "China's manufacturing sector showed a recovery in August, mainly due to improved production activity. However, overall demand didn't improve, and foreign demand declined notably, leading product inventories to grow. There was no sign of an improvement in companies' willingness to replenish inventories of inputs or in their confidence. Industrial prices trended down. China's economy showed signs of a short-term recovery, but downward pressure remains a long-term problem. Amid unstable Sino-American relations, China needs to step up countercyclical policies."
