FILE PHOTO: A worker welds automobile parts at a workshop manufacturing automobile accessories in Huaibei, Anhui province, China June 28, 2019. REUTERS/Stringer
BEIJING (Reuters) – Factory activity in China shrank in August for the fourth month in a row, official data showed on Saturday, as the United States ramped up tariff pressure and domestic demand remained sluggish.
The Purchasing Managers’ Index (PMI) fell to 49.5 in August, China’s National Bureau of Statistics said, versus 49.7 in July, below the 50-point mark that separates growth from contraction on a monthly basis.
Analysts polled by Reuters had expected the August headline reading would be unchanged from the previous month.
Further signs of contraction in China’s factory activity suggest the world’s second-biggest economy is continuing to lose momentum, heightening fears of a global recession.
Reporting by Hong Kong newsroom; Editing by Clarence Fernandez