National Bureau of Statistics: Manufacturing Purchasing Managers' Index slightly rebounded in August, and the Non-Manufacturing Business Activity Index expanded at a faster pace

In August, the Manufacturing Purchasing Managers Index, Non-Manufacturing Business Activity Index, and Composite PMI Output Index were 49.4%, 50.3%, and 50.5% respectively, up by 0.1, 0.2, and 0.3 percentage points from the previous month. All three indices rebounded, and the overall economic prosperity level in China continued to remain in the expansion range. The price indices continued to rise.

The main raw materials purchase price index and ex-factory price index were 53.3% and 49.1% respectively, up by 1.8 and 0.8 percentage points from the previous month, marking three consecutive months of increase. The overall price level in the manufacturing market continued to improve. The prosperity level of the service industry rebounded significantly. The Business Activity Index for the service industry was 50.5%, up by 0.5 percentage points from the previous month, reaching a new high for the year.

Interpretation of the Manufacturing Index

Looking at the sub-indices, among the five sub-indices that make up the Manufacturing PMI, the Production Index and Supplier Delivery Time Index were both above the critical point, while the New Orders Index, Raw Material Inventory Index, and Employment Index were below the critical point.
-- The Production Index was 50.8%, up by 0.3 percentage points from the previous month, indicating an accelerated expansion in manufacturing production.
-- The New Orders Index was 49.5%, up by 0.1 percentage points from the previous month, indicating a slight improvement in market demand for manufacturing.
-- The Raw Material Inventory Index was 48.0%, up by 0.3 percentage points from the previous month, still below the critical point, indicating a narrowing decline in the inventory of main raw materials in manufacturing.
-- The Employment Index was 47.9%, down by 0.1 percentage points from the previous month, indicating a slight decline in employment prosperity among manufacturing enterprises.
-- The Supplier Delivery Time Index was 50.5%, up by 0.2 percentage points from the previous month, indicating that the delivery time of raw material suppliers in manufacturing continued to accelerate.

Interpretation of the Non-Manufacturing Index

By industry, the Business Activity Index for the construction industry was 49.1%, down by 1.5 percentage points from the previous month;

The Business Activity Index for the service industry was 50.5%, up by 0.5 percentage points from the previous month. By sector, the Business Activity Indices for railway transportation, water transportation, air transportation, telecommunications, radio and television and satellite transmission services, capital market services, and other industries were all above 60.0%, indicating a high level of prosperity;

The Business Activity Indices for retail, real estate, and other industries were all below the critical point.