BEIJING (Reuters) – China’s manufacturing activity rebounded unexpectedly in August, a private survey released on Friday showed, as supply, domestic demand and employment improved, suggesting Beijing’s efforts to revive economic growth are bearing fruit.
The PMI index for the manufacturing sector calculated by Caixin/S&P Global stood at 51.0 in August, against 49.2 the previous month, returning beyond the threshold of 50 which separates contraction and expansion of activity.
This is a number higher than the consensus, which stood at 49.3, and a peak since last February.
If this rebound surprises, the survey offers a mixed picture of the state of the sector, the day after an official survey according to which manufacturing activity contracted in August for a fifth consecutive month.
Caixin surveys some 650 private and public companies mainly export-oriented, located in coastal regions, while the official survey is based on 3,200 firms across the country.
Manufacturing groups reported higher production and a rise in new orders thanks to stronger demand, the Caixin survey shows. New export orders, on the other hand, continued to decline.
(Report Ellen Zhang and Ryan Woo; Jean Terzian)
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