British News Agency

According to CCTV, China’s manufacturing Purchasing Managers’ Index (PMI) rose to 49.8 in August, up 0.6 points from July. The production sub-index stood at 50.4, while the new orders index reached 50.6. The two indices increased by 0.5 and 2.1 points, respectively, compared with July.

The data were jointly released by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP). According to the data, the manufacturing sector saw a recovery in domestic demand and an improvement in overseas market demand.

NBS Chief Statistician Huo Lihui said the PMI rose on a monthly basis in 16 of the 21 sectors surveyed and that the sector outlook had improved. CFLP Vice Chairman He Hui said domestic and international market demand for the manufacturing sector expanded in August, while the new orders and export orders indices recorded significant increases on both an annual and monthly basis.

Due to weather conditions such as extreme heat, typhoons, heavy rainfall and floods, the manufacturing PMI remained below the 50 level in August. PMI readings above 50 indicate expansion, while readings below 50 indicate contraction.

Policies aimed at expanding domestic demand, increased investment guided by the central government budget and the acceleration of major projects helped the index recover from the previous month. Higher summer consumption and international demand also supported the improvement.