China’s manufacturing activity rebounded in August on fresh increases in output and new orders, data from S&P Global showed on Friday.<\/p>\n
The Caixin manufacturing Purchasing Managers’ Index rose to 51.0 in August from 49.2 in July. A reading above 50.0 indicates expansion in the sector. Although the growth was mild, the pace was the best seen since February.<\/p>\n
Driven by higher client spending, new order intakes increased in August. Meanwhile, export orders declined again.<\/p>\n
Companies ramped up production in response to rising demand. Output growth was among the best seen over the past year. <\/p>\n
Firms increased their purchasing activity to meet rising demand. However, caution around stock building led to a marginal fall in inventories of inputs.<\/p>\n
There was a fresh rise in manufacturing employment in August. The rate of job creation was the fastest since March 2010. Despite rising payroll numbers, backlogs of work rose marginally, the survey showed. <\/p>\n
Supplier performance improved slightly in August following a deterioration in July.<\/p>\n
Due to higher cost of raw materials, operating expenses escalated in August. The latest data marked the first upturn in input costs since February. However, competition for new business<\/span> and client requests for discounts meant that average selling prices fell slightly. <\/p>\n The twelve-month outlook for output remained positive in August. Stronger global economic conditions and new product launches are forecast to support higher production over the months ahead. <\/p>\n Nonetheless, the degree of positive sentiment fell to an 11-month low in August.
Economic indicators including those for consumption, investment and industrial production came in weaker than market expectations at the start of the third quarter, Wang Zhe, a senior economist at Caixin Insight Group said.<\/p>\n