China factory activity slows in August 2020 as flooding hits business

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Floods affect the production of companies in Sichuan and southwestern China.

Factory activity in China slipped slightly in August, according to official data published on Monday, August 31, as the country grappled with the fallout from widespread floods.

Zhao Qinghe, a senior statistician at the National Bureau of Statistics , said heavy rains and floods had hit the business and production of companies in Sichuan and southwestern China. 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."Business expectations have improved and corporate confidence has increased," he said.

She added that until the coronavirus situation eases overseas and China relaxes its travel restrictions, the country will rely more on domestic spending for economic growth.

 

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