Results of a private survey on Tuesday showed China’s manufacturing activity expanded in August at the fastest pace in nearly a decade.
The Caixin/Markit manufacturing Purchasing Managers’ Index (PMI) came in at 53.1 for August, as compared to 52.8 in July.
Economists polled by Reuters had expected Caixin/Markit manufacturing PMI to come in at 52.7.
PMI readings above 50 indicate expansion, while those below that level signal contraction. The readings are sequential and indicate on-month expansion or contraction.
China’s manufacturing sector has been battered as factories temporarily shut earlier this year due to large-scale lockdowns to contain the coronavirus pandemic. Global demand was also hit as the virus spread around the world.
But recent data show signs of China’s economy recovering from the pandemic.
On Monday, China’s National Bureau of Statistics reported that official manufacturing PMI for the month of August came in at 51.0, slightly missing analysts expectations for a 51.2 reading.
The official PMI survey typically polls a large proportion of big businesses and state-owned companies. In comparison, the private Caixin and IHS Markit survey features a bigger mix of small- and medium-sized firms.
This is breaking news. Please check back for updates.