China manufacturing grew in August but weaker

China’s manufacturing activity held stey in August as domestic demand helped to offset weaker orders from exports markets that are struggling with coronavirus pandemic, a survey showed Monday. monthly purchasing manrs’ index released by Chinese statistics ncy and an industry group declined to 51 from July’s 51.1 on a 100-point scale on which numbers above 50 indicate activity increasing.

A sub-measure for production declined to 53.5 from previous month’s 54. Export orders shrank but at a slower rate. That measure improved to 49.1 from 48.4. China, where pandemic began in December, was first ecomy to shut down to fight virus and first to try to revive business after ruling Communist Party declared victory over disease in March. Chinese consumer demand is recovering but t as quickly as Beijing wants. export outlook is uncertain due to rising coronavirus case numbers in United States and some or important markets.

“ growth engine is w clear. Overseas demand will only pick up slowly,” said Iris Pang of ING in a report. “Until n China will rely more on its own for ecomic growth.“

China’s ecomy grew by an unexpectedly strong 3.2% over a year earlier in three months ending in June, rebounding from a 6.8% contraction previous quarter. Manufacturing is close to rmal, but retailing, restaurants and or service industries are struggling. Forecasters warn exports are likely to dip again later in year once demand for masks, surgical gloves and or medical supplies eases. That will increase importance of Chinese consumers and government stimulus spending in keeping recovery on track.