CLSA China Manufacturing latest report shows that August's Purchasing Managers Index (PMI) was 49.2, down from July's 53.3, which is since November 2005 has been manufacturing index (676.739,glue stick -20.98, -3.01% ) for the first contraction.
Weak trend of recent months show that there is signs of slowing down the manufacturing sector. Most of the respondents said that the growing demand for delay, which is particularly evident in the export markets, new export orders for the first time since 21 months of contraction.
August survey showed that as the world economic slowdown, glue gun coupled with reduced demand for raw materials, the average increase in input prices was down there. Latest data show that input prices rose from July's record high of significant downturn in the survey, some firms also mentioned the oil price pullback. Overall, the cost increase has come down to 13-month low.
August's increase prices significantly dropped to 10-month lowest level since. Decline in demand because of production, production capacity surplus exists to some extent, signs, many Chinese manufacturers choose to cut the number of employees in August.