China’s PMIs Increases Calls for Policy Easing

Growth in China’s vast factory sector cooled in August as foreign and domestic demand slowed, two surveys showed on Monday, spurring new calls for more policy easing to prevent the economy from stumbling once more.

A purchasing managers’ index (PMI) published by the National Bureau of Statistics fell from a 27-month high to 51.1 in August, slightly less than forecast as factories shed jobs for at least the 24th consecutive month.

A separate, private PMI was more torpid. The final HSBC/Markit PMI eased to 50.2 in August, close to the preliminary reading of 50.3 and only a shade above the 50-point mark demarcating an expansion in activity from a contraction.  The declines in both PMIs prompted some analysts to re-state their support for more policy action to lift the fading growth momentum in the world’s second-biggest economy.

Reuters

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.