China Factory Activity Shrinks Again In July, Pressure Eases Slightly: Caixin PM | 8/31/2015 | Staff
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BEIJING (Reuters) – Pressure on China’s factories eased a little in July thanks to growth-boosting steps from the government, but overall manufacturing activity remained in contraction as a trade war with the United States dented export orders, a private survey showed on Thursday.

The readings were largely in line with an official gauge that showed factory activity last month shrank at a slower-than-expected pace.

Caixin/Markit - Manufacturing - Purchasing - Managers - Index

The Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) for July rose to 49.9 from 49.4 in June, and just below the neutral 50-mark dividing expansion from contraction on a monthly basis.

That was slightly above economists’ expectations of 49.6, according to a Reuters poll.

China - Manufacturing - Economy - Signs - Recovery

“China’s manufacturing economy showed signs of recovery in July. Policies such as tax and fee reductions designed to underpin the economy had an effect,” Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group, wrote in a note accompanying the data.

The moderate improvement seen in the survey was partly driven by a recovery in domestic demand, with July factory output growing marginally after a brief drop in the previous month.

New - Orders - Territory - Average

New orders also swung back to expansionary territory at 50.2 but remained much weaker compared with the historical average.

The still-soft conditions were underscored by new exports orders shrinking again in July amid deteriorating global demand. While the slump was less severe than in June, the outlook remained clouded with survey respondents citing the China-U.S. trade dispute for dampening sales to foreign customers.

US - Negotiators - Round - Trade - Talks

U.S. and Chinese negotiators ended a brief round of trade talks on Wednesday with little sign of progress and agreed to meet again in September. It was their first in-person talks since a G20 truce in June as both sides try to find a way out of the year-long dispute.

Earlier in the week, U.S. President Donald Trump warned Beijing against waiting out his first term to finalize any...
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