BEIJING – China’s production activity remained strong in August, as domestic demand helped offset orders from export markets suffering from the coronavirus pandemic, a survey showed Monday.
The monthly index of purchasing managers published through China’s statistics firm and a trade organization fell to 51 from 51.1 in July on a 100-point scale where figures above 50 imply an increase in activity.
A production sub-order fell to 53.5 from 54 last month.Export orders declined, at a slower pace.This measure increased from 48.4 to 49.1.
China, where the pandemic began in December, is the first economy to close to fight the virus and the first to review to revive business after the ruling Communist Party declared victory over the disease in March.
The call from Chinese customers is answering, but not as temporarily as Beijing would like. Export customers have concerns due to the accumulation of coronavirus cases in the United States and some other markets.
“The engine of expansion is now clear. Demand will accelerate slowly,” ING’s Iris Pang said in a report. “Until then, China will count more on its own economic expansion.”
China’s economy grew strangely strong to 3.2% compared to the previous year in the 3 months to June, recovering from a 6.8% contraction in the last quarter.Manufacturing is close to normal, but retail, restaurants and other service industries are in trouble.
Meteorologists warn that exports are expected to decline by the end of the year, once requests for masks, surgical gloves and other medical supplies ease, increasing the importance of Chinese consumers and government stimulus spending to maintain recovery on the right track.
24/7 policy of the latest news and events