Chinese Manufacturing Activity Slowed in August

Chinese manufacturing activity growth slowed this month, dropping to 51 points from 51.1 in July, as floods in southwest China disrupted production.

With the recorded slowdown, however, Chinese manufacturing activity remained above 50 points, which is the separating point between expansion and contraction, which indicates that the Chinese economy continues to recover from the shock of the Coronavirus.

PMI readings above 50 indicate expansion, while PMI readings above 50 indicate contraction.

Growth in services moved at a faster pace in August, with the official non-manufacturing PMI reaching 55.2 compared to 54.2 in July.

China’s manufacturing sector took a hit earlier this year with factories shutting down due to lockdowns to contain the coronavirus pandemic.

But recent data from China paints a recovery picture, with manufacturing activity expanding and industrial output rising for the fourth consecutive month in July.