Survey: PMI index drops to 77-month low
The Caixin flash China general manufacturing PMI plunged to a 77-month low of 47.1 in August from 47.8 in July, suggesting continued downward pressure facing the world’s second-largest economy, a preliminary Caixin survey showed on Friday.
A reading above 50 indicates expansion, while a reading below that represents contraction.
New orders and new export orders continued to decline at a faster rate in August, and employment dropped at a faster pace than in July, said the survey.
“The Caixin Flash China General Manufacturing PMI for August has fallen further from July’s two-year low, indicating that the economy is still in the process of bottoming out,” said He Fan, chief economist at Caixin Insight Group.
But overall, the likelihood of systemic risk remains under control and the structure of the economy is still improving, he added.