MNI DATA IMPACT: China Caixin August Mfg PMI Back To Expansion

     BEIJING (MNI) - The Caixin China manufacturing Purchasing Managers Index

(PMI) rose to 50.4 in August from July's 49.9, bouncing back into the

expansionary zone above the breakeven 50 and hitting the highest level since

April.

     The improvement has been driven by the recovery in production, according to

Caixin. The production sub-index rose to a five-month high, which signals

improving market demand.

     New export orders, an indicator of  external demand, fell to the lowest

since December 2018, remaining in contractionary territory for the third

consecutive month.

     The manufacturing industry's confidence is at a historical low. Though

manufacturers surveyed expect the market situation to improve with new product

release, they are still worried about trade frictions and the slowing global

economy. 

     The Caixin figure was not in line with the trend of the official PMI,

reported by the National Bureau of Statistics on Saturday, which edged down 0.2

pp to 49.5 in August from July.

     The Caixin PMI tracks small and medium sized manufacturers which are not

surveyed by the NBS.

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

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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