China July manufacturing PMI rises as recovery continues: Caixin
By Frank Prenesti
Date: Monday 03 Aug 2020
(Sharecast News) - China's manufacturing activity continued its recovery from the coronavirus crisis, the private Caixin/Markit survey revealed on Monday.
The manufacturing Purchasing Managers' Index (PMI) rose to 52.8 last month from June's 51.2, the third consecutive month of growth and the biggest jump since January 2011.
It also beat analysts' forecasts for a more modest improvement of 51.3. A print of above 50 indicates growth.
China's official manufacturing PMI, which was released on Friday and polls a larger proportion of companies, rose to 51.1 in July from 50.9 the previous month.
"Growth forecasts were underpinned by expectations that economic activity and client demand will continue to recover from the pandemic," IHS Markit said in a statement.
Stagnant export orders and employment concerns weighed on the manufacturing recovery. July new export orders continued to fall, but at a slower rate, as China's major trading partners continued to feel the impact of the pamdemic.
"The survey found that some companies increased recruitment to meet production needs, but some others remained cautious and laid off workers to reduce costs," said Wang Zhe, a senior economist at think tank Caixin Insight Group.
"We still need to pay attention to the weakness in both employment and overseas demand," Wang said.
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