China production dips yet again

Beijing, August 31

Factory activity in China shrank in August for the fourth month in a row as the United States ramped up trade pressure and domestic demand remained sluggish, pointing to a further slowdown in the world's second-largest economy. 

The Purchasing Managers' Index (PMI) fell to 49.5 in August, China's National Bureau of Statistics said on Saturday, versus 49.7 in July, below the 50-point mark that separates growth from contraction on a monthly basis. A Reuters poll showed analysts expected the August PMI to stay unchanged from the previous month. 

The official factory gauge showed growing trade frictions with the United States and cooling global demand continued to wreak havoc on China's exporters. Export orders fell for the 15th straight month in August, although at a slower pace, with the sub-index picking up to 47.2 from July's 46.9. Total new orders also continued to fall, indicating domestic demand remains soft, despite a flurry of growth-boosting measures over the past year. — Reuters