China’s manufacturing sector expanded for the 13th straight month in August, the National Bureau of Statistics (NBS) said on August 31.
The country’s manufacturing purchasing managers’ index (PMI) came in at 51.7 in August, up from 51.4 in July, according to NBS data.
A reading above 50 indicates expansion, while a reading below reflects contraction.
“The reading, the second highest so far this year, showed a steady upward trend of China’s manufacturing sector,” said NBS senior statistician Zhao Qinghe.
Zhao attributed the quickened expansion to improving domestic demand and booming manufacturing in consumer goods and hi-tech sectors.
Sub-indices for production and new orders came in at 54.1 and 53.1, respectively, up from 53.5 and 52.8 in July suggesting an improved sup- ply and demand relationship, said Zhao.
The import sub-index rose from 51.1 in July to 51.4 in August, the highest so far this year, according to the NBS.
Equipment manufacturing reported a PMI figure of 52.8, higher than the headline manufacturing index of 51.7, indicating a better manufacturing structure.
On the other side of the equation, China’s non-manufacturing sector expanded at a slightly slower pace in August, NBS data showed.
The non-manufacturing PMI came in at 53.4 in August, down from 54.5 in July, according to the NBS.
“Though at a slower pace, the performance of China’s non-manufacturing sector continues to maintain robust momentum,” Zhao said.
Zhao attributed the slower expansion to rainstorms and floods in certain regions that affected the construction industry.
The service sector, which ac- counted for more than half of the country’s GDP last year, saw slower expansion in August, with the index standing at 52.6, down from 53.1 in July.
New business orders came in at 50.3 in August, up from 50.2 in July, staying above 50 for the fourth straight month.
The index for the construction industry, which was affected by extreme weather, dropped from 62.5 in July to 58 in August, according to the NBS.