In August, the PMI of manufacturing industry in China rose by 0.5 percentage

On September 2, the purchasing managers index (PMI) of Caixin China's manufacturing industry rose by 0.5 percentage points in August to 50.4, returning to above the dividing line between prosperity and decline, the highest level since April, indicating a slight improvement in manufacturing prosperity. The improvement of PMI in Caixin's manufacturing industry in August is mainly due to the recovery of output. The output index rose to an expansion range in August, a five-month high, driving the inventory index of finished products into the expansion range for the first time since this year. Manufacturers generally say that the increase is due to signs of stronger demand.

New export order index contracted for three consecutive months, the lowest since December 2018 recorded in August, but the new order index declined slightly, indicating that the improvement of domestic demand played a hedging role in the decline of exports.

August employment index is only slightly below the dividing line between prosperity and decline, indicating that the employment situation of manufacturing industry has improved.

Manufacturers reported that, affected by the falling price of raw materials, the average input cost fell again in August. Although the decline was mild, in order to stimulate customer demand, manufacturers increased efforts to reduce the ex-factory price, the decline was the highest since 2016.