This photo, taken on October 17, 2018, shows a worker inspecting shoes at a factory in Qingdao, eastern Chinese province of Shandong.
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China's manufacturing activity widened in August according to results from a private poll published Monday, as production rose. However, export sales declined in the wake of the escalating trade war with the US.
Caixin / Markit Factory Purchasing Managers The PMI stood at 50.4 in August, outperforming 49.8 analysts expected by Reuters. The PMI for Caixin / Markit manufacturing was 49.9 in July.
PMI values above 50 indicate expansion, while those below this signal indicate contraction.
Incoming sub-index remained in expansion territory in August, but declined from July, suggesting that, according to Zhengsheng Zhong, director of macroeconomic analysis at CEBM Group, a subsidiary of Caixin, demand for manufactured products has remained unchanged, "Zhong said In a press release, foreign demand declined in a worsening trade dispute between China and the US
The two countries imposed new tariffs on Sunday for their reciprocal imports.
In August, partly due to improved manufacturing activity The prospects are not rosy given the long-term downward pressure, Zhong said.
"Overall demand did not improve and foreign demand declined noticeably, leading to an increase in product inventories," he said Willingness of the companies n replenish supplies of inputs or for greater confidence. Industrial prices declined. "
Private survey results came after official data showed production PMI fell to 49.5 on Saturday in August, China's statistical office said – compared with 49, 7 in July According to a Reuters survey, analysts expect the PMI to remain flat against July.
The official PMI survey typically polls a large proportion of large companies and state-owned companies, with the Caixin indicator showing a larger mix
The PMI is a company-wide survey of the operating environment that provides an initial glimpse of what's going on in an economy, as it's usually one of the first major economic indicators published each month become persistent US-China trade dispute.
– CNBCs Yen Nee Lee and Reuters contributed to this report.