MNI DATA IMPACT: China August Manufacturing PMI Falls to 49.5

     BEIJING (MNI) - China's Purchasing Manager Index (PMI) edged down to 49.5

in August from July's 49.7, data released by the National Bureau of Statistics

on Saturday showed, just missing the forecast of 49.6 by analysts polled by MNI.

The index remained in the contractionary zone below 50 for the fourth straight

month. 

     MNI highlights the following key points:

     - The lower PMI was mainly due to weakened market demand, though production

continued to expand. Both the production sub-index and the new order sub-index

fell 0.2 and 0.1 percentage point to 51.9 and 49.7 from July, respectively. But

the  production index was still 0.4 pp higher than the annual average, remaining

in the expansion zero.

     - Although the new export order sub-index was still below the breakeven 50,

it rebounded 0.3 pp to 47.2, indicating better external demands than that in

last month.

     - The Non-manufacturing PMI accelerated 0.1 to 53.8 from July, maintaining

its  expansion momentum, the NBS said.

     --Business activity in railway transportation, telecommunication and

Internet software sector were above 58, while construction registered 61.2,

indicative of fast growth. Due to typhoons and heavy rains, activities in

road/air transportation, accommodation, catering, and tourism sector were

greatly affected and declined, according to the NBS. 

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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