China PMI Industrial

The Caixin China General Manufacturing PMI rose to 50.4 in August 2024 from 49.8 in July, above market forecasts of 50.0 as new orders returned to growth, driving faster production expansion amid better underlying demand conditions. However, foreign demand fell marginally for the first time in the year-to-rate amid report of deteriorating conditions. Meanwhile, employment stabilized after eleven months of decline due to an improvement in demand conditions, with the backlogs of work rising for the sixth straight month. Purchasing activity fell marginally while delivery times lengthened at a slightly faster pace due to supply and transportation constraints. On prices, input prices fell for the first time in five months due to lower raw material prices, while output prices dropped as firms offered discounts to remain competitive. Finally, business sentiment improved to a three-month high, supported by optimism about improvements in economic conditions.