China’s manufacturing PMI slips to 49.1 in August

China’s Purchasing Managers’ Index (PMI) for the manufacturing sector fell to 49.1 in August, down slightly from 49.4 in July, according to official data released by the National Bureau of Statistics (NBS).

Examining the data by enterprise size, large enterprises reported a PMI of 50.4 per cent, down 0.1 percentage point from the previous month but still above the critical threshold.

In contrast, medium-sized enterprises had a PMI of 48.7 per cent, and small enterprises reported a PMI of 46.4 per cent, reflecting decreases of 0.7 and 0.3 percentage points, respectively.

The production index slipped to 49.8 per cent, a 0.3 percentage point drop from the previous month, indicating a slowdown in production activities.

The new order index fell to 48.9 per cent, down by 0.4 percentage points, suggesting a decline in market demand.

The raw material inventory index dropped to 47.6 per cent, a 0.2 percentage point decrease, reflecting a reduction in major raw materials inventory.

The employment index fell to 48.1 per cent, down by 0.2 percentage points, signaling a decline in employment conditions within the manufacturing sector.

Although the supplier delivery time index increased slightly to 49.6 per cent, up by 0.3 percentage points from July, it remains below the critical point, indicating continued delays in raw material deliveries.

Attribution: National Bureau of Statistics report

Subediting: M. S. Salama