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20:40, 01-Sep-2017
China's Caixin manufacturing PMI hits six-month high
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China’s manufacturing activity expanded at its fastest pace in six months in August, according to a private survey published on Friday.
The Caixin China General Manufacturing Purchasing Managers' Index (PMI) stood at 51.6 for August, up from 51.1 in July, according to the survey conducted by financial information service provider Markit and sponsored by Caixin Media.
The reading remained above the 50-point mark, which separates growth from contraction, for the third straight month.
Total new businesses grew at the strongest rate in more than three years, while export orders saw the sharpest increase in over seven years, pointing to robust demand at home and abroad.
AFP Photo
AFP Photo
The Caixin readings followed a similarly stronger-than-expected official manufacturing survey on Thursday, though the latter had shown a softening in export orders for Chinese goods.
The private survey tends to focus on smaller firms while the official PMI covers mostly larger firms, many of whom are state-owned manufacturers.
Among the sub-indices, the output index dropped slightly but new orders continued growing. Both input costs and output prices rose further, with the latter hitting an eight-month high, said Zhong Zhengsheng, director of macroeconomic analysis at CEBM Group.
In line with the official survey, Caixin’s PMI also showed stronger increases in input and output prices, with companies passing on price increases to their customers.
Reuters Photo
Reuters Photo
Prices of industrial commodities and building materials, in particular, have surged in China this year due to a year-long construction boom and government efforts to reduce excess capacity by shutting inefficient and heavily polluting mines and mills.
The survey also showed manufacturers stepped up purchases of parts and materials for the third straight month as orders continued to increase, with business confidence hitting a five-month highs.
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