China factory activity slows in August as flooding hits business

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BEIJING: Factory activity in China slipped slightly in August, according to official data published Monday, as the country grappled with the fallout f...

Factory activity in China slipped slightly in August, according to official data published Monday, as the country grappled with the fallout from widespread floods.

But in August, that rebound slowed a little with the PMI inching down to 51.0 from 51.1 in the previous month. Nomura economists had warned earlier this month that while there was likely to be strong recovery among high-tech industries in August, resurgent flooding in mid-August"could impact both production and demand along the Yangtze River".

The August PMI was also below analyst expectations reflected in a Bloomberg poll, which forecast a climb to 51.2.In February, the index plunged to 35.7 points after the coronavirus brought much of China to a standstill.

 

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