Sur­vey: PMI in­dex drops to 77-month low

China Daily (Canada) - - NEWS CAPSULE -

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.

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