China’s factory activity contracted for four straight months in August


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China’s factory activity contracted for four straight months in August

Demonstrating a raft of caustic impacts of a year-long trade war with the United States, China’s National Bureau of Statistics’ data revealed on Saturday, the 31st of August 2019, had shown that Chinese factory activity had posted fourth straight months of contraction in a row on August, as United States had ratcheted up pressure to rubberstamp a trade deal with China on their own terms amid sluggish domestic demand, suggesting further moderation of the world’s second-largest economy.

According to Saturday’s (August 31st) data released by China’s National Bureau of Statistics, the Purchasing Managers’ Index (PMI), an indicator widely contemplated as a separator between recession and growth, had fallen to 49.5 in August from 49.7 a month earlier, while an analysts’ poll was expecting August PMI to be unchanged in August.

Aside from a technically recessed factory activity in China, Saturday’s (August 31st) had added that China’s export orders fell for the fifteenth straight months in August, while new factory orders from both home and abroad had been witnessing a sweeping plunge despite a basket of stimulus introduced earlier this year.

Besides, followed by release of another calamitous China factory data pouring scorns over the world’s second-largest economy, several analysts were quoted saying that a persistent contraction in China’s havoc-scale manufacturing output would likely to be countered with further monetary stimulus.