China's manufacturing sector returns to growth in August - Caixin

2nd Sep 2024 07:40

(Sharecast News) - Manufacturing activity in China returned to growth in August, according to a private survey released on Monday.

The Caixin purchasing managers' index for the sector rose to 50.4 from 48.8 in July, coming in ahead of consensus expectations of 50.0.

A reading of 50.0 indicates expansion, while a reading below signals contraction.

Wang Zhe, economist at Caixin Insight Group, said growth was "limited", however.

"Considering the government's ambitious annual economic growth target, the challenges and difficulties in stabilising growth over the coming months will be substantial," he added.

Over the weekend, data from the National Bureau of Statistics showed that the official manufacturing PMI fell to 49.1 in August from 49.4 the month before.

Gabriel Ng, assistant economist at Capital Economics, said: "The PMIs for August suggest that economic momentum held broadly steady last month, with modest improvements in manufacturing and services helping to offset a further slowdown in construction activity.

"But with factory gate price declines accelerating, the economy clearly remains at risk of slipping back into deflation."