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China’s Caixin PMI offers silver lining

Published 09/01/2019, 11:29 PM
Updated 09/01/2019, 11:33 PM
© Reuters.

Investing.com China’s economy remains under pressure but some mixed data out Monday morning offers a glimmer of hope.

The Caixin China General Manufacturing Purchasing Managers’ Index (PMI), released Monday morning, recorded an increase to 50.4 in August (with a number over 50 signalling expansion) up from 49.9 in July.

However, the official PMI released on Saturday by the National Bureau of Statistics (NBS) suggested a gloomier outlook. The NBS said the official PMI for August came in at 49.5, down from 49.7 in July.

Marking a more positive note, services seem to be doing better. The official non-manufacturing PMI rose for the first time in five months to 53.8 in August from 53.7 in July.

“China’s economy showed signs of a short-term recovery, but downward pressure remains a long-term problem,” Zhong Zhengsheng, director of macroeconomic analysis with CEBM Group, told Caixin, a mainland China business publication.

The Caixin index suggested the that manufacturing output expanded in August but the growth rate remains below historical averages.

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