A rise in new orders caused mainland China’s manufacturing industry to grow slightly in August, according to the Caixin/S&P Global manufacturing purchasing managers’ index (PMI), which surveys around 650 private and state-owned manufacturers.
The shift – mainly in domestic orders – supported employment, production expansion and improved business confidence. However, export orders declined, “falling marginally for the first time in the year-to-date amid reports of deteriorating external conditions,” the report stated.
August’s index came in at 50.4, up from 49.8 in July. Survey respondents reported that better “underlying demand conditions” and promotional efforts underpinned the rise in new orders.
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“The improvement in overall demand led to a stabilisation of staffing levels following an 11-month period of decline with some firms taking on additional staff to cope with ongoing workloads,” the report said.
While purchasing activity fell in August, this was attributed to manufacturers’ growth in inventory levels.
Caixin/S&P Global’s August index was more positive than an official PMI survey for the same month, the South China Morning Post reported. That showed factory activity had contracted for a fourth month straight, with a PMI reading of 49.1 (down from 49.4 in July).
