(Sharecast News) – Activity in China’s manufacturing sector unexpectedly grew in August, according to figures released on Friday.
The Caixin manufacturing purchasing managers’ index rose to 51.0 from 49.2 the month before, coming in above the 50.0 that separates contraction from expansion.
This was also comfortably ahead of analysts’ expectations for a reading of 49.3 and marked the highest reading since February.
Wang Zhe, senior economist at Caixin Insight Group, said: “In August, the manufacturing sector showed overall improvement.
“Apart from sluggish exports, the gauges for supply, total demand, and employment were all in expansionary territory.”
Sheana Yue, China economist at Capital Economics, said: “The Caixin manufacturing PMI rose by a larger clip compared to the official manufacturing index in August. Taken together, the average of the two is consistent with downward pressure on factory activity dissipating last month.
“The big picture is that overall economic momentum remains weak. But policy support is now being ramped up. Assuming this continues, then a modest cyclical rebound is likely.”