Domestic demand engine for growth
China's manufacturing activity fell to a nine-month low in August as domestic firms struggled with economic troubles at home and abroad.
Recent HSBC data show that China's purchasing managers' index, which gauges national manufacturing activity, hit 47.8 in August, its lowest score since November 2011. According to international practice, a PMI reading of above 50 indicates economic expansion and a reading below 50 indicates contraction. What's more, the country's preliminary manufacturing output index declined from 50.9 to 47.9 in July, also showing a five-month low, as indicated by the British banking company's data.
In August, the number of export orders received by China hit a 41-month low, dragging down the month's manufacturing figures and suggesting that the external demand for Chinese manufactured goods has declined greatly.
