China's August Purchasing Managers' Index (PMI) Hits Highest in 9 and a Half Years

Recorded 53.1, Higher Than Previous Month's 52.8... 4 Consecutive Months of Economic Expansion
National Bureau of Statistics PMI Also at 51.0... 6 Consecutive Months of Economic Expansion

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Chinese financial information company Caixin (財新) announced on the 1st that the manufacturing Purchasing Managers' Index (PMI) for August recorded 53.1, slightly higher than July's 52.8. This is the highest level in nine and a half years since February 2011.

The Caixin manufacturing PMI has shown a reading above 50, indicating an expansion phase in the economy, for four consecutive months since May.

The Chinese economy is showing signs of a full recovery starting from the second quarter after overcoming the impact of the novel coronavirus disease (COVID-19) in the first quarter.

In fact, China's economic growth rate rebounded from minus 6.8% in the first quarter to 3.2% in the second quarter, showing a recovery trend.

Unlike the official manufacturing PMI from the National Bureau of Statistics, which mainly targets large state-owned enterprises, the Caixin manufacturing PMI is used as a key reference to gauge the business conditions of Chinese export companies and small and medium-sized enterprises.

Caixin analyzed that "as manufacturing recovers from the COVID-19 shock, there are signs of improvement in customer demand."

Meanwhile, the official manufacturing PMI for August, released by the National Bureau of Statistics the previous day, also recorded 51.0, indicating an expansion phase in the economy for six consecutive months.

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