China’s manufacturing PMI rises in August ’24

China’s manufacturing sector improved in August 2024, with the latest S&P Global Manufacturing Purchasing Managers’ Index (PMI) rising to 50.4 from 49.8 in July, signalling a slight uptick in operating conditions.

Manufacturing production continued to grow in August for the tenth consecutive month, driven by consumer and intermediate goods sectors. New orders increased, supported by improved demand and promotional efforts.

Export orders declined slightly due to challenging external conditions. Staffing levels stabilised after a prolonged decline, with some firms hiring additional staff to manage workloads.

Backlogged orders increased for the sixth month. Purchasing activity decreased slightly, attributed to sufficient input stock holdings. Finished goods stocks also rose, partly due to delays in outbound shipments.

Vendor performance worsened in August, with longer lead times reported due to supply and transport constraints.

“Prominent issues such as insufficient domestic demand, significant uncertainties in external demand, and weak market optimism persist,” according to the latest report published by China Caixin China Global.

Attribution: S&P Global Manufacturing PMI report

Subediting: M. S. Salama