China’s manufacturing sector slows as export demand weakens

According to a poll released Tuesday, China’s factory activity slowed in August as export demand decreased.

On a 100-point scale, values above 50 indicate activity expanding, the Chinese statistics bureau and an official industry group’s monthly purchasing managers’ index fell to 50.1 from 50.4 in July.

According to the National Bureau of Statistics and the China Federation of Logistics and Purchasing, a sub-measure of new exports declined by a full point from the previous month to 46.7.

Officials have predicted a drop in demand for Chinese exports in the second half of the year. Flooding in July and tougher anti-coronavirus regulations have slowed factory and consumer activity.

Researchers at the Chinese investment bank CICC stated in a study on the latest manufacturing numbers that they expect the demand slump to continue.

It went on to say, “Overall, the manufacturing industry will see a gradual downturn.”

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