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1 Sep 2015
China Caixin Aug final PMI at 47.3 vs 47.1 flash
FXStreet (Bali) - China Caixin PMI (final) came in at 47.3 vs 47.1 flash, with purchasing activity declining at sharpest rate since March 2009, while input costs and output charges both fall at marked rates.
Summary
Chinese manufacturers saw the quickest deterioration in operating conditions for over six years in August, according to latest business survey data. Total new orders and new export business both declined at sharper rates than in July, and contributed to the most marked contraction of output since November 2011. Lower production requirements prompted companies to reduce their purchasing activity at the fastest rate since March 2009, while weaker client demand led to the first rise in stocks of finished goods in six months. Meanwhile, softer demand conditions contributed to marked falls in both input costs and output charges in August.
Commenting on the China General Manufacturing PMI™ data, Dr. He Fan, Chief Economist at Caixin Insight Group said: “The final Caixin China Manufacturing PMI for August continued to retreat, with sub-indices signalling continued weak demand in the markets for goods and factors of production. Recent volatilities in global financial markets could weigh down on the real economy, and a pessimistic outlook may become self-fulfilling. Macroeconomic regulations and controls must continue and fresh reform measures must be introduced. Finetuning should go hand in hand with speedier implementation of structural reform in order to release the full potential of growth and lead the market to confidence.”
Summary
Chinese manufacturers saw the quickest deterioration in operating conditions for over six years in August, according to latest business survey data. Total new orders and new export business both declined at sharper rates than in July, and contributed to the most marked contraction of output since November 2011. Lower production requirements prompted companies to reduce their purchasing activity at the fastest rate since March 2009, while weaker client demand led to the first rise in stocks of finished goods in six months. Meanwhile, softer demand conditions contributed to marked falls in both input costs and output charges in August.
Commenting on the China General Manufacturing PMI™ data, Dr. He Fan, Chief Economist at Caixin Insight Group said: “The final Caixin China Manufacturing PMI for August continued to retreat, with sub-indices signalling continued weak demand in the markets for goods and factors of production. Recent volatilities in global financial markets could weigh down on the real economy, and a pessimistic outlook may become self-fulfilling. Macroeconomic regulations and controls must continue and fresh reform measures must be introduced. Finetuning should go hand in hand with speedier implementation of structural reform in order to release the full potential of growth and lead the market to confidence.”