The latest survey from Caixin, released on Monday, indicates that the manufacturing sector entered expansion territory in August, with a manufacturing PMI score of 50.4. This is an increase from July's 49.8, positioning the sector above the critical 50-point threshold that demarcates expansion from contraction.
Manufacturing production has now expanded for the tenth consecutive month in August, driven by firms within the consumer and intermediate goods sectors. Although the growth rate was modest, it did accelerate from the low observed in July as new incoming orders shifted back into expansion mode.
Survey respondents cited improved underlying demand conditions and effective promotional efforts as the key drivers behind the rise in new orders. Despite this, export orders experienced a slight decline for the first time this year, amid reports of worsening external conditions.
