The latest official survey of activity in China's manufacturing sector confirms that August was another sluggish month for the country's economy.
The official survey from the National Bureau of Statistics showed that manufacturing activity shrank for the fourth consecutive month. The official purchasing managers' index (PMI) fell to 49.1 in August from 49.4 in July, remaining below the 50-mark that separates growth from contraction and missing the median market forecast of 49.5.
Producers reported that factory gate prices were at their worst in 14 months, plummeting to 42 from 46.3 in July. Additionally, the new orders and new export orders sub-indices remained firmly in negative territory, and manufacturers continued to halt new hiring.
A small positive was the non-manufacturing sector, which remained in expansion territory. The August reading for this sector (covering services and construction) increased to 50.3 from 50.2, easing concerns that it would also enter a period of contraction.
The decline in manufacturing caused the overall economic activity to slow to 50.1 from 50.2 in July. While the forecast was for a dip into contraction with a reading of 49.9, the economy narrowly avoided this, continuing to expand but only slightly.
