China’s Caixin Flash PMI Drops To 47.1 In August

The flash Caixin/Markit China Manufacturing Purchasing Managers’ Index (PMI) declined further to 47.1 in August, the lowest reading since the Global Financial Crisis and a sixth straight month below 50, the level separating contraction from expansion.

The number came against market expectation of a modest improvement for the month, with Bloomberg consensus projection of 48.2.

"The sharp fall does renew uncertainties about recent activity growth…This flash reading can also be particularly disappointing if we take into account the possible front-loading of production ahead of supply-side shutdowns for major international events (the World Athletic Championship and WWII Memorial)," writes a research report by Goldman Sachs Gao Hua.

China Expert network