China’s Manufacturing Sector Expands at Slower Pace in August
The pace of growth of China's manufacturing sector slowed down in August on the back of floods, missing economists' forecasts and raising
The pace of growth of China’s manufacturing sector slowed down in August on the back of floods, missing economists’ forecasts and raising concerns about economic recovery in the wake of the coronavirus crisis. China’s official manufacturing PMI dipped slightly to 51 in the month of August from 51.1 in July.
Economists had expected the PMI reading to rise to 51.2 instead, especially supported by pent-up demand and government’s stimulus measures. While exports have also picked up despite most countries around the world still reeling under the pandemic, recovery in the Chinese manufacturing sector is yet to steady.
The PMI reading for August reveals that the sector continued to expand, driven by an uptick in new orders for domestic markets. However, the pace of growth slowed down since the previous month due to a reduction in export orders, which remained in contraction but at a slower pace.
Consumers in the country have also been cautious about spending their money even after the economy restarted some months ago. Despite the pandemic being brought under control, domestic consumption remains weak on account of significant job losses and income cuts across the country.
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