China's August factory activity picks up as demand improves, PMI shows
Tweet
Share
E-mail
FILE PHOTO: A worker works on a production line at a factory of a ship equipments manufacturer, in Nantong, Jiangsu province, China March 2, 2020. China Daily via REUTERS/File Photo
By Liangping Gao and Ryan Woo
BEIJING, Sept 1 (Reuters) - China's manufacturing sector expanded at a faster pace in August as output, new orders and exports all accelerated, a private-sector survey showed on Tuesday.
The RatingDog China General Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 51.5 in August from 50.9 in July, staying above the 50-mark that separates growth from contraction. It also surpassed analysts estimates in a Reuters poll of 51.
Output rose at the fastest pace in three months, driven by stronger demand and capacity expansion, while new orders grew at a quicker rate on the back of the sharpest rise in new export business in six months.
Employment was unchanged after increases in June and July, but stronger demand pushed backlogs of work to their fastest accumulation since March. Finished goods inventories grew at the sharpest rate since September 2025, and firms increased purchasing activity after scaling it back in July.
Input cost inflation edged up slightly from July, though S&P Global said cost pressures remained relatively modest. Manufacturers cut output prices for the first time this year, citing intense competition and promotional discounting.
Weakening demand at home has strained a broader recovery in the $20 trillion economy, and external uncertainties including trade tensions and geopolitical risks continue to cloud the outlook, pressuring demand.
The country's GDP growth slowed to 4.3% in the second quarter, the slowest in more than three years and below forecasts. It grew 5.0% in the first quarter.
Looking ahead, factories remained optimistic about production over the next 12 months, but overall confidence slipped to its softest level since January, the survey showed.
(Reporting by Liangping Gao and Ryan Woo; Editing by Jacqueline Wong)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Taiwan's chip prowess is built on democracy and rule of law, president says
- South Korea to send 44-member disaster relief team to Nepal after floods
- Yen hangs near 160 amid BOJ rate-hike bets, dollar wobbles
Create E-mail Alert Related Categories
ReutersSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
