9,367.77 TRY BIST 100 BIST 100
4.79 CNY CNY CNY
34.56 USD USD USD
36.19 EUR EUR EUR
0.13 CNY CNY/EUR CNY/EUR
41.35 TRY Interest Interest
74.24 USD Fossil Oil Fossil Oil
30.90 USD Silver Silver
4.09 USD Copper Copper
100.80 USD Iron Ore Iron Ore
365.00 USD Shipbreaking Scrap Shipbreaking Scrap
2,982.57 TRY Gold (gr) Gold (gr)

China's manufacturing gauge shrinks this month

China's Caixin Manufacturing Purchasing Managers Index fell to 49.5 in August, more than expected. Data showing the second consecutive monthly contraction for the index point out that the growth in the country has lost pace and demand has contracted.

China's manufacturing gauge shrinks this month

China's factory activity contracted in August. According to the survey, disruptions from power outages and Covid-19 outbreaks have hit large and state-owned companies as well as smaller firms.

The Manufacturing Purchasing Managers Index fell to 49.5 last month from 50.4 in July, according to a statement released by Caixin and S&P Global on Thursday. That's lower than the median estimate of 50 in the poll by Bloomberg economists.

The index fell below 50, the line separating expansion and contraction for the first time since May.

The incoming data is in line with the official survey released on Wednesday, which showed a contraction in factory activity in August. The Caixin index tracks smaller, private, and export-oriented firms, while the official PMI mostly tracks larger, state-owned businesses.

"The increase in Covid-19 cases, the extreme heat wave and restricted power usage have caused a slight deterioration in overall business conditions in the manufacturing sector," said Wang Zhe, senior economist at Caixin Insight Group.

“In the face of negative factors such as recurrent Covid-19 cases and natural disasters, more subsidies and assistance are needed to poor and low-income groups amid the stagnant job market and shrinking consumer demand,” Wang said.

China's Caixin PMI contracted in August, indicating that the recovery of the manufacturing sector has lost momentum. The weaker-than-expected data reflects many shocks, from COVID-19 outbreaks and power outages to disruption in the real estate industry.

Growth is losing pace

The export survey showed that growth in supply slowed sharply and demand contracted. A weakening global outlook points to more weakness ahead.

The world's second-largest economy faces increased risks from COVID-19 outbreaks and lockdowns as cases spread to mainland states. As a historic drought causes power outages, the real estate industry continues to struggle with low confidence from homebuyers and property developers.

According to the data, Caixin PMI's new export order sub-indicator also contracted for the first time in three months. This shows that foreign demand has contracted, which has provided an important boost to the Chinese economy during the pandemic.

Comments

No comment yet.

Only +plus subscribers can access this content.

SUBSCRIBE now to share your thoughts on the markets and get more comments.
SUBSCRIBE If you already have an account Sign In

Most read news

Europe's period of economic stagnation

Thursday, November 21, 2024

Export climate index increased in October

Friday, November 8, 2024

Factory orders in Germany exceeded expectations in September

Wednesday, November 6, 2024

Treasury and Finance Minister Şimşek evaluated foreign trade data

Sunday, November 3, 2024

IMF: EU slowdown, US strength

Friday, October 25, 2024
Follow List
Expand
Your watch list is empty

Add your favorite commodities for quick access and don't miss the latest price change news.


There are no news categories you follow
Edit Notification Preferences
E-bulletin subscription
Sign up to receive the latest news and daily iron prices by e-mail and sms
Become a Plus Subscriber Now!
Try it free for 3 days!
Subscribe Now
Neutral Prices
Be informed
Provincial Iron Prices
Comments and Analysis
Subscribe Now