A private gauge of China’s manufacturing activity reached its highest level in nearly a decade last month, supported by strong domestic and external demand and rapid production activity.
The Caixin China Purchasing Managers Index, which is weighted toward small, private manufacturers, rose from 52.8 in July to 53.1 in August, Caixin Media Company and research firm Markit said on Tuesday.
Production and new orders expanded at faster rates than in July and the companies reported the first increase in export sales in 2020. Total new work reached its highest level since January 2011 as the domestic and global economies managed to overcome the coronovirus epidemic.
Overall, the economic recovery continues after the epidemic in the manufacturing sector, said a statement with the data. Supply and demand have expanded with pickup in foreign demand.
Sixteen said that the employment sub-sector remained in the negative zone for the eighth straight month, but it was closest to the positive area this year as companies reported further growth in the work backlog.
China’s official manufacturing PMI, according to data released by the National Bureau of Statistics, focuses more on large, state-owned companies, which declined from 51.1 in August to 51.1 in July. The official survey of manufacturers has a much larger sample than the private survey.