31 Aug 2018
PMI Report on China Manufacturing (August 2018)
China’s manufacturing PMI rose slightly to 51.3 in August from 51.2 in July, indicating a slight acceleration in the growth of the manufacturing sector amid the ongoing China-US trade war.
8 of the 13 sub-indices were higher than their respective levels in the previous month. The output index rose to 53.3 in August from 53.0 in July, showing that the output has increased at a faster pace recently. Nevertheless, the new export orders index dropped by 0.4 pts from the previous month to 49.4 in August, the lowest level since March this year. The fall in the index may suggest that the negative impact of the trade war on China’s exports has started to unfold. Meanwhile, the input prices and the ex-factory prices indices gained 4.4 pts and 3.8 pts respectively in August, indicating a faster rise in prices of production inputs and ex-factory prices of finished goods in the month.
By size of enterprises, the PMI of ‘large enterprises’ fell to 52.1 in August from 52.4 in July. The PMI of ‘medium enterprises’ came in at 50.4 in August, up from 49.9 in July. Mean while the PMI of ‘small enterprises’ went up to 50.0 in August from 49.3 in July.
The output index was 53.3 in August, up from 53.0 in July. The output index of ‘large enterprises’ fell to 54.3 in August from 54.5 in July; the output index of ‘medium enterprises’ was 52.7 in August, up from 51.6 in July; the output index of ‘small enterprises’ rose to 51.0 in August from 50.6 in July.
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