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MNI DATA BRIEF: Caixin China Manufacturing PMI Falls Below 50

SINGAPORE (MNI)

Caixin China's manufacturing PMI for August declined 1.1 percentage points on month to 49.2, falling into a contraction zone below the breakeven 50 for the first time since May 2020 due to the sporadic resurgence of Covid-19 cases and floods, the financial publisher said on Wednesday.

The lower PMI was due to decreased production and contracted demand, with the production sub-index falling below 50 for the first time since March 2020. Surveyed manufacturers said tightened epidemic measures had impacted production, suppressed demand, and increased the difficulty of input supply.

While the overall external demand also declined on deteriorated global pandemic and blocked transportation, as the new export order sub-index fell below 50 for the first time since February.

Caixin's PMI tracks small and medium-sized manufacturers, while the official PMI covering large state-owned companies and released on Tuesday also fell 0.3 point to 50.1 in August from July.

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