(Yicai Global) Aug. 1 -- China's Caixin Purchasing Managers' Index for manufacturing hit an eight-month low in July amid the steepest decline of new export orders in more than two years.
The PMI was down 0.2 point from June at 50.8, the lowest since November, according to a report published by IHS Markit today. A figure above 50 represents industry growth.
"The survey signaled a weakening manufacturing trend as a grim export market dragged on the sector's performance," said Zhong Zhengsheng, director of macroeconomic analysis at CEBM Group, a think tank for Caixin Insight Group. "The positive drivers were the increase in stocks of purchases and easing pressure on capital turnover."
China has two key purchasing managers' indices. The official PMI is run by the government and comprises 3,000 companies, most of which are state owned. The Caixin index, often known as the Caixin-Markit index, reaches out to 500 businesses which are generally smaller and privately owned. The official PMI for July was down 0.3 point on the month at 51.2, data released yesterday by the National Bureau of Statistics shows.
Output and new business expanded at softer rates while new export orders fell at the fastest rate in 25 months, IHS Markit's report added, without furnishing data. Manufacturers remain optimistic that output will increase over the next year, but their anticipated growth reflected the output figure for June, which was a six month low, it said.
Editor: James Boynton