Well-known Chinese news site NetEase recently reported that China’s National Bureau of Statistics just released its August Manufacturing PMI (Purchasing Managers Index) number. The PMI index for the Chinese manufacturing sector was 49.5 percent. This is the fourth consecutive month in which PMI has remained below 50 percent. The key sub-indicators that dragged down the overall PMI number were New Orders (49.7 percent), Raw Materials Inventory (47.5 percent) and Employment Level (46.9 percent). Data also showed medium and small companies suffered the most. Large corporations are in a better shape. PMI is an indicator of financial activity reflecting purchasing managers’ acquisition of goods and services. A PMI number below 50 typically reflects a decline.
Source: NetEase, August 31, 2019