Cargo Business Newswire

Wednesday, September 2, 2015

China PMI down in August, further proof of slowed economic growth

In August, activity in China's factory sector shrank at the highest rate in at least three years as domestic and export orders tumbled, increasing worries that the world's second-largest economy may be heading for a fall.

Even more worrying, China's services sector, which has been one of the only positive spots in the weakening economy, also showed signs of cooling.

China's official manufacturing Purchasing Managers' Index (PMI) fell to 49.7 in August from 50.0 in July, according to the National Bureau of Statistics. That was the lowest since August 2012, and below the 50-point mark separating growth from contraction.

New orders - indicating domestic and foreign demand - fell to 49.7 in August from July's 49.9. New export orders decreased for an 11th straight month.

Hurt by soft demand, overcapacity and falling investment, China's economy has been further plagued by plunging shares and a shock yuan devaluation, in what some have called a "perfect storm" of factors that is shaking global markets and could strain relations with China's major trading partners.

For more of the Reuters story: www.reuters.com