China’s Official Manufacturing PMI Falls in August

China’s official manufacturing purchasing managers index fell to 49.7 in August from 50.0 a month ago, the China Federation of Logistics and Purchasing, which issues the data with the National Bureau of Statistics, said in a statement Tuesday.

The August PMI fell short of the median 49.8 forecast from a Wall Street Journal poll of 10 economists.

A PMI reading above 50 indicates an expansion in manufacturing activity, while a reading below points to a contraction.

The subindex measuring new orders dropped to 49.7 from 49.9 in July, while the production subindex improved/decreased to 51.7 from 52.4, the statement said.

The preliminary Caixin China manufacturing PMI, a competing gauge of nationwide manufacturing activity, declined to 47.1 in August, its lowest level in 77 months.

For its final reading, the Caixin China manufacturing PMI fell to 47.3 in August from 47.8 in July, its lowest point in more than six years, Caixin Media and research firm Markit said Tuesday.

China’s official nonmanufacturing PMI, also released on Tuesday, fell to 53.4 from 53.9 in July.

via WSJ

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza