China's National Bureau of Statistics reported an August manufacturing purchasing managers' index of 49.8 percent, up 0.6 percentage points from July and pointing to a recovering activity level. Production and new orders sub-indices both moved above 50.
The manufacturing purchasing managers' index for August, released by China's National Bureau of Statistics on Aug. 31, came in at 49.8 percent, up 0.6 percentage points from the previous month. It stayed below the 50-percent threshold, but the gain was among the larger ones of recent months.
광고 문의 · 300×250Within the detail, the production sub-index stood at 50.4 percent and new orders at 50.6 percent, up 0.5 and 2.1 percentage points respectively. Both crossing the expansionary 50 mark indicates that output and market demand rose together.
The 2.1-point jump in new orders is the most striking item in the release. When demand-side indicators improve faster than production, the reading is often that inventory adjustment has entered its final phase.
The non-manufacturing business activity index was unchanged at 49.0 percent. The composite PMI output index rose 0.2 points to 49.5 percent, which the bureau described as a modest improvement in overall economic output conditions.
The PMI is a survey-based measure of corporate purchasing managers and shows direction relative to the prior month rather than absolute output. Even below 50, a rising index reads as a slowing pace of contraction.
Korea's export structure is closely linked to Chinese manufacturing conditions. Because intermediate goods, materials and components make up a large share, improvement in new orders tends to show up in Korean export volumes after a lag of some months.
For Sinophone traders in Korea, the figure is a reference point for timing orders. Monthly PMI readings fluctuate, however, so a single number rarely settles the direction; the usual practice is to read several months together.
