In August, China logged the best economic performance in the manufacturing sector since January 2011. China’s Manufacturing PMI, calculated by Caixin Media Co. and IHS Markit, rose to a record high.
The indicator advanced to 53.1 points compared to 52.8 points in July 2020. According to Trading Economics, experts projected the reading to fall to 52.6 points.
Importantly, a reading above 50 indicates an expansion of the sector, whereas a reading below 50 signals contraction. The Manufacturing PMI in China exceeds this mark for the fourth month in a row.
According to Caixin, firms recorded the first increase in export orders in 2020. The National Bureau of Statistics reported that China's Manufacturing PMI dropped to 51 points in August from 51.1 points in July. This indicator had exceeded the 50-point mark over the past six months.
Wang Zhe, a senior economist at Caixin Insight Group, believes that the economy has only started its recovery and it may take a long time to revive economic activity in the country. Currently, the economy is expanding, and the volume of new orders in the manufacturing sector of China is growing amid an increase in exports. Experts believe that an upsurge in imports and exports triggered the rise in China's Manufacturing PMI.
