The factory activity in China is outperforming the estimates, and expands at the fastest pace in 5 months

China’s manufacturing activity is unexpectedly to grow in August against the backdrop of recovery in new requests and export work, a Special survey It was shown on Monday, with the help of a long -standing trade war truce with the United States

The Ratingdog Manufacturing Purchase Managers Index came at 50.5, sharply overcoming the estimates of 49.7 economists included in Reuters.

The scale indicated the fastest rate of expansion since March, as it recovered from 49.5 July. Read less than 50 shrinks while one above that threshold indicates an expansion.

“The improvement was partially driven by recovery in new export orders, indicating” the elasticity of external demand in the face of definitions, “said in a memo.

The average cost of raw materials increased at the fastest pace in nine months, prompting some companies to transfer the highest expenditures to consumers. The survey showed that the average selling prices settled after eight months of declines.

Beijing sought to reduce excess capacity and arrange price wars across the industrial sectors weighing the lower lines of companies.

However, profit trends that were interpreted from the PMI data only showed a simple recovery and remained under pressure in general.

While the total business confidence improved, labor in the manufacturing sector remained dark, as the poll showed, as business owners remained cautious in employment, which reduces jobs for the fifth consecutive month.

“Be careful not to constantly and persistent local demand,” Yu warns of the continuous and continuous domestic demand, “warns of the continuous and continuous domestic demand,” warns of the demand for the continuous and continuous domestic demand, “possible external orders”, and a slow -profit recovery.

Yu added: “The durability of improvement depends on whether exports are really settling and whether the domestic demand can rise.”

The results of the special survey were still more optimistic than the official reading that was released on Sunday, which showed that the manufacturing activity was shrinking for the fifth month in a row in August, reaching 49.4 compared to 49.3 in July.

The index of non -manufactured purchasing managers, which covers services and construction, was expanded to 50.3 in August from 50.1 in the previous month.

Special survey studies tend to draw a better image of official opinion polls over the previous years on the back of the strongest exports. Cover the special survey A smaller batch of more than 500 mostly directed towards export Companies, while the official purchasing managers index respond to a sample of more than 3000 companies in the upstream sectors.

The growth of exports in China has won expectations In recent monthsBAP is largely driven by an increase in shipments to Southeast Asia and European countries, while shipments to the United States decreased for four consecutive months.

The Chinese authorities have collected leaders from Southeast Asian, Central Asia, European and Latin America in recent months to expand trade and investment relations, as the tariff policy in Washington reaches the United States to the United States

Speaking at an annual gathering of foreign leaders – including Russian President Vladimir Putin and Indian Prime Minister Narendra Modi – in Tianjin on Monday, Chinese President Xi Jinping He urged the member states of the Shanghai Cooperation Organization To deepen trade and investment relations and reject the “Cold War mentality”.

Earlier this month, Beijing and Washington extended their tariff truce for another 90 days, while maintaining highly slope duties, with drawing drawings of about 57.6 % on Chinese goods and 32.6 % tariffs on American goods, Petroson Institute of International Economy.