China's private sector logged a moderate growth in August with the rate of expansion little changed from July, survey data published by Markit showed Monday.
The Caixin China composite Purchasing Managers' Index dropped slightly to 51.8 in August from 51.9 in July. Nonetheless, a reading above 50 indicates expansion.
A further increase in total business activity was underpinned by moderate expansions of activity and output across the services and manufacturing sectors in August.
At the same time, the general services business activity index rose to 52.1 in August from 51.7 a month ago.
Services companies partly linked higher business activity to new projects but the pace of growth edged down to a three-month low. Goods producers also reported slower expansion in new business. As a result, composite new work increased at a slightly softer pace than in July.
Service sector staff numbers stabilized in August after a marginal reduction in July. Meanwhile, manufacturing payrolls declined in August. At the composite level, employment dropped for the fifteenth successive month.
August data pointed to a third successive monthly fall in the level of work-in-hand at services companies, while backlogs continued to increase at manufacturers. Overall composite outstanding workloads gained only slightly in August.
Service providers registered only a marginal rate of cost inflation that was the slowest since January 2015. At the same time, the rate at which input costs increased at manufacturers slowed to a moderate pace.
Consequently, composite input prices rose modestly in the latest survey period. Prices charged for both manufactured goods and services rose only slightly in August.
Services companies continued to express optimism towards the 12-month business outlook in August.
by RTT Staff Writer
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