China’s manufacturing activity shrinks again

China’s production activity shrunk in August for a fifth flat month, and while the manufacturers claimed that they expect more clarity in a trade agreement with the US, the domestic demand remained stagnant.

The Official Purchasing Managers Index (PMI) rose to 49.4 in August and rose to 49.3 in July and missed an average estimation of 49.5 in a Reuters survey, which separated growth without contraction.

Chinese economy, US tariffs, a property sector decline, increasing work insecurity, intensive debtor local governments and weakening of exports due to excessive weather. According to economists, these pressures threaten to remove the ambitious 2025 growth target of Beijing “around five percent”.

According to the National Statistics Bureau (NBS), the non -production PMI index, including service and construction, rose from 50.1 to 50.3 in August.

NBS composite manufacturing and non -production PMI was 50.5 in August compared to 50.2 in July.

Although the July export estimates eaten, earnings were supported by a low base, and Chinese exporters were struggling to enlarge their market share in the midst of fear of losing access to the US, a push to Southeast Asia with an increase in posts – some manufacturers called the “crazy headlight race”.

At the beginning of this month, the United States and China extended the tariff ceasefire 90 days, locked 30 percent of Chinese imports and 10 percent on US goods, but uncertainty is eroding on both sides of the Pacific.

When the profits in China’s industrial firms fell for a third month in July, the official data showed on Wednesday and emphasized how enterprises fought with repressed demand and at home permanent factory door deflation, and further stimulated the pressure on Beijing.

Policy makers have increased consumer subsidies, but a long -term property decrease is still making expenditures, there is a key store of real estate with real estate.

The reluctance of households to buy mortgages was reflected in the July Bank lending data, which was unexpected for the first time in 20 years.

And if consumer expenditures cause China’s top court to reduce social insurance payments of firms and employees, many companies and workers are already struggling to end. Urban unemployment increased from five percent to 5.2 percent in June.