© Reuters.  © Reuters.

By Gina Lee

Investing.com – Chinese factory data saw its expansion slow down slightly in August, but the services industry was strongest level since early 2018.

The National Bureau of Statistics (NBS) said that August’s non-manufacturing PMI rose to 55.2, higher than July’s reading of 54.2, in August. It also said that the manufacturing Purchasers’ Managers Index (PMI) slipped to 51 in the same month, lower than July’s 51.1 figure and the forecasted 51.2 prepared by Investing.com.

“The recovery of demand is slower than that of production, which is starting to drag on the economic recovery,” China Logistics Information Center said in a statement.

“More than half of companies still list the lack of market demand as the main difficulty” and that is making them cautious about expanding production further, the statement added.

The lack of demand remains a hurdle to recovery, with firms suffering even with new orders rising to 52 and new export orders increasing to 49.1.

The weather also played a role in the dip in factory activity.

“Some companies in Chongqing and Sichuan reported an impact from heavy rains and floods, resulting in a prolonged procurement cycle for raw materials, reduced orders and a pullback in factory production,” NBS senior statistician Zhao Qinghe said I a separate statement.

Some investors remained optimistic following the data’s release.

Commerzbank AG (OTC:CRZBY) economist Zhou Hao said that the better-than-expected PMI for the services sector indicated the start of its recovery after being hit harder by COVID-19. The softer manufacturing data suggests “the momentum in the industrial sector has been stabilizing amid the post COVID-19 recovery,” he added.

Chang Shu of Bloomberg Economics also remained cautiously optimistic.

“Looking ahead, we expect the recovery to continue to make headway, propelled by incremental increases in domestic demand and further opening of overseas economies. “

“That said, returning to pre-pandemic growth rates anytime soon would be a tall order,” he warned.

Other relevant articles 
[2020-08-31 06:50:22] Gold Up Over Weak Dollar, Mixed Chinese and Japanese Data
[2020-08-31 06:25:21] Oil Up, Finishes August Strong Despite Oversupply Fears
[2020-08-31 06:10:22] RBI governor rules out stagflation, expects consumer inflation to...
[2020-08-31 06:00:30] China Starts Second Australian Wine Probe as Tensions Mount
[2020-08-31 05:45:23] New Zealand bourse website hit by fresh cyberattack, but keeps...
[2020-08-31 05:30:22] Asian Stocks Up Over Surprise Rise in Chinese Service Sector
[2020-08-31 04:30:23] Dollar Inches Down, Yen Edges Up as PM Contest Takes Shape
[2020-08-31 04:20:25] China Factory Outlook Slips in August Amid Slow Recovery
[2020-08-31 03:45:25] Oil prices edge up on stimulus support despite ample supplies
[2020-08-31 03:15:22] Buffett’s Berkshire Takes Stakes in Japanese Trading Companies
[2020-08-31 03:10:21] Telco SoftBank shares fall 3% as parent slashes stake
[2020-08-31 03:10:21] Warren Buffett looks to Japan, takes 5% stakes in five trading...
[2020-08-31 03:10:21] Auckland Exits Lockdown as New Zealand Again Eyes Elimination
[2020-08-31 03:05:21] Asian stocks hit two-year high, Nikkei bounces as Berkshire buys in
[2020-08-31 02:35:23] Dollar set for fourth monthly drop; yen steadies on reports of...
[2020-08-31 02:30:22] As fintech upends banking, Japan regulator expects more cross-boundary tie-ups
[2020-08-31 02:10:22] Japan July industrial output rises 8.0% month-on-month
[2020-08-31 01:50:22] Portland mayor urges restraint, renunciation of violence after fatal shooting
[2020-08-31 01:25:21] Chinese investors snap up Hong Kong property as new security law deters...
[2020-08-31 01:20:22] Keep on dining out, UK minister urges as popular cut-price offer ends
[2020-08-30 22:15:19] United Airlines bids farewell to change fees in push for bookings
[2020-08-30 22:15:19] Democrats say Trump visit may worsen protests in Wisconsin city
[2020-08-30 21:50:19] Montenegro ruling DPS party just ahead of pro-Serb alliance -pollster
[2020-08-30 21:30:27] U.S. coronavirus cases near six million as Midwest, schools face outbreaks
[2020-08-30 21:25:19] Police break up forest rave in England amid COVID-19 clampdown
[2020-08-30 21:20:19] U.S. Open order of play on Monday
[2020-08-30 20:35:19] Lebanese ambassador Adib poised to be designated PM
[2020-08-30 20:35:19] Rockets fall near Baghdad airport, no casualties
[2020-08-30 20:20:19] U.S. Gulf of Mexico oil output down 1.29 million bpd after storm, data shows
[2020-08-30 20:15:21] Trump intel chief defends briefings ban, Democrats raise subpoena threat
[2020-08-30 20:10:19] Mexican airline Interjet to boost domestic flights
[2020-08-30 20:10:19] Alaphilippe claims Tour de France stage two win and yellow jersey
[2020-08-30 20:10:19] Soccer-Salt Lake owner Hansen to sell Utah teams after alleged racist comments
[2020-08-30 19:50:23] 3 Stocks To Watch In The Coming Week: Tesla, Macy’s, Broadcom
[2020-08-30 17:40:19] TIM to set clock ticking on Italy single network with KKR deal Monday
[2020-08-30 16:05:18] Week Ahead: More Equity Records After Dovish Fed; USD Weaker, Gold...
[2020-08-30 14:55:18] FDA commissioner says willing to fast-track COVID-19 vaccine: FT
[2020-08-30 14:20:18] Qatar sets new minimum wage, lifts restriction on changing jobs
[2020-08-30 13:30:19] Precious Metals & Energy - Weekly Review and Calendar Ahead
[2020-08-30 13:25:18] Burst of success for progressive challengers in U.S. congressional races may fizzle in Massachusetts
[2020-08-30 13:20:18] Mauritius fishermen battle to save dozens dolphins near oil spill
[2020-08-30 13:15:30] Economic Calendar - Top 5 Things to Watch This Week
[2020-08-30 13:10:18] Thai royalists rally to support monarchy amid calls for reforms
[2020-08-30 13:00:25] Putin and Lukashenko plan to meet in Moscow - Kremlin
[2020-08-30 12:50:18] Israel hopes for Washington signing ceremony on UAE deal by mid-September
[2020-08-30 12:45:18] Wizz Air to cut flights as Hungary closes borders to foreigners
[2020-08-30 11:30:18] France says senior officer investigated over suspected security breach
[2020-08-30 11:00:22] British universities should not reopen next month, says union
[2020-08-30 10:45:18] Cycling: Gilbert out of Tour de France as Lotto Soudal down to six riders
[2020-08-30 10:40:18] Beirut port blast death toll rises to 190
[2020-08-30 07:50:18] One dead as protesters from rival sides clash in Portland
[2020-08-30 07:20:18] India sets global record with single-day rise in coronavirus cases
[2020-08-30 07:00:23] Global coronavirus cases surpass 25 million: Reuters tally
[2020-08-30 05:50:21] Huawei focusing on cloud business which still has access to U.S....
[2020-08-30 05:25:18] Tennis: Medvedev has no concerns about U.S. Open COVID...
[2020-08-30 04:55:18] Australia, New Zealand tread cautiously as coronavirus lingers
[2020-08-30 04:30:18] Golf: Distracted McIlroy ready to walk out as awaits birth of...
[2020-08-30 04:15:18] Golf: Johnson, Matsuyama share lead at unforgiving Olympia Fields
[2020-08-30 03:30:18] Exclusive: Hong Kong survey shows support grows for pro-democracy goals, 44%...
[2020-08-30 02:20:17] Brazil says is confident U.S. steel quota to be lifted in time
[2020-08-30 01:50:17] Bucks finish off Magic to reach Eastern semifinals
[2020-08-30 01:20:18] Divided Montenegro on course for knife-edge election
[2020-08-30 01:15:18] A picture and its story: The despair of a Rio widow, in a city...
[2020-08-30 01:05:18] Murray ready to have fun again at U.S. Open
[2020-08-29 23:45:16] Quiet please! U.S. Open players bemoan the sound of silence
[2020-08-29 23:05:15] Unstoppable Djokovic downs Raonic to clinch Western & Southern Open title
[2020-08-29 22:55:24] Trump tours Louisiana city hit by Hurricane Laura, says state...
[2020-08-29 22:35:15] Trump administration halts election security briefings for Congress, citing...
[2020-08-29 21:15:15] Insatiable Serena in hot pursuit of slam number 24 - again
[2020-08-29 21:10:15] Iran says to fight U.S. suit to seize $1.7 billion held by Deutsche Boerse unit
[2020-08-29 21:05:15] Syrian opposition urges major powers to back nationwide ceasefire
[2020-08-29 20:40:15] Hurricane-related shut-ins curb 82% of oil, 59% of natural gas output in U.S....
[2020-08-29 20:00:19] Women march through Belarusian capital calling for Lukashenko to...
[2020-08-29 19:55:15] Motor racing: Emotional Hamilton storms to inspired Belgian pole
[2020-08-29 19:05:15] Kristoff wins Tour de France first stage as Pinot crashes
[2020-08-29 19:05:15] Former Trail Blazers star Robinson dies at 53
[2020-08-29 17:45:15] Belarus revokes accreditations of journalists covering protests for foreign media
[2020-08-29 17:45:15] Czech Senate speaker leaves for Taiwan visit, angering China
[2020-08-29 16:45:15] Azerbaijan accuses Moscow of arming Armenia since July clashes
[2020-08-29 16:35:14] Pure Gold, Miner ETFs Add Luster to Portfolios in Uncertain Times
[2020-08-29 16:35:14] Injured Osaka withdraws from Western & Southern final
[2020-08-29 16:30:15] Clijsters faces tough path in bid to reclaim past glory
[2020-08-29 16:20:15] Anti-racism protesters to march in Kenosha after third night of calm
[2020-08-29 13:55:14] Afghanistan flash floods kill 160, search for bodies continues
[2020-08-29 13:10:14] Pure Gold, Miner ETFs Add Luster to Portfolios in Uncertain Times
[2020-08-29 13:10:14] COVID-19 unlikely to stop Tour, says French minister
[2020-08-29 13:05:14] Point/Counterpoint: The Case for Hotel Stocks
[2020-08-29 13:00:18] Thousands protest in Mauritius over dead dolphins, demand resignations
[2020-08-29 12:05:14] Weekly Comic: Stocks Extend Fed-Fueled Rally As Dow Erases 2020 Losses
[2020-08-29 10:50:14] White House suggests $1.3 trillion coronavirus aid bill; Pelosi says not enough
[2020-08-29 10:45:14] UAE cancels Israel boycott, allows economic agreements: state news agency
[2020-08-29 10:20:14] Turkey to hold military exercise off Cyprus amid Mediterranean tensions
[2020-08-29 10:15:14] MLB roundup: Mets cap DH sweep with walk-off HR
[2020-08-29 09:45:19] Japan-US confirm bilateral treaty covers isles disputed with...
[2020-08-29 09:40:14] Swimming: Ikee wins first race since leukaemia diagnosis
[2020-08-29 09:15:14] South Korea running out of sickbeds in COVID-19 resurgence
[2020-08-29 08:50:14] Djokovic, Pospisil look to form new players association
[2020-08-29 07:15:14] Bitcoin balks as the Fed talks, DeFi surge continues: Weekly recap
[2020-08-29 06:55:16] Billionaire Steve Cohen enters talks to buy New York Mets: CNBC
[2020-08-29 06:50:14] German court permits Berlin protests against coronavirus curbs