Caixin PMI signals improvement in China's manufacturing sector
Caixin China manufacturing purchasing managers' index (PMI) climbed to 51.0 in August from 49.2 in July, signaling improvements in the sector, data released on Friday shows.
The index's recovering trend is consistent with the official data. China's manufacturing PMI stood at 49.7 in August, up 0.4 index point from the previous month, according to data released by the National Bureau of Statistics (NBS) on Thursday.
Both supply and demand in the sector expanded in August, according to Caixin's report. Meanwhile, the reading for manufacturing employment rose into expansionary territory for the first time in six months and logged its highest level since March 2010.
"Stabilizing expectations and increasing household income should still be the policy focus," said Wang Zhe, senior economist at Caixin Insight Group.
"The internal and external economic environments are becoming increasingly complex, adding to the urgency and necessity of implementing relevant supportive policies," Wang added.
In a meeting held earlier this week, Jin Zhuanglong, head of the country's Ministry of Industry and Information Technology (MIIT), told some of China's biggest manufacturers that there's need to roll out measures to support enterprises in the manufacturing sector.
Such measures include strengthening coordination between government and enterprises, deepening reform, promoting fair regulation, and providing policy support and services to manufacturing enterprises, according to Jin.