Chinese manufacturing activity expands in August, PMIs show

Chinese manufacturing activity expanded in August, according to two separate reports on Thursday.

The official manufacturing purchasing managers’ index rose to 50.4 in August from 49.9 a month earlier, moving above the 50 level that separates an expansion from a contraction in sector activity. Analysts had expected no change to the reading.

The Caixin China manufacturing PMI, a separate private gauge of activity in the sector, dropped to 50.0 in August from 50.6 in July.

The official PMI for non-manufacturing was also released, showing a drop to 53.5 in August from 53.9 in July.

“The latest Chinese manufacturing PMI surveys for August did offer up some optimism even though the Caixin measure slowed to 50, down from 50.6,” said Michael Hewson, chief market analyst at CMC Markets.

“The official measure improved slightly to 50.4, almost a two year high, which is encouraging after a fashion, though if 50.4 is a cause for celebration then it merely goes to show that investors are clutching at straws.”