China’s services sector led recovery from the Coronavirus in August, offsetting the slowdown in the manufacturing sector, the official manufacturing Purchasing Manager’s Index data showed.
The non-manufacturing PMI widened expansion to 55.2 from 54.2 in July, while the manufacturing gauge slipped slightly to 51 in August from 51.1 a month earlier.
Factory activities were affected by the floods across southwestern China, in addition to the simmering tensions between the U.S. and China.
Despite signs of recovery in the world’s second biggest economy, the annual growth may reach 2.2 percent in 2020, which will be the weakest pace in more than three decades.
The elevating stand off between Washington and Beijing and a potential second wave of Covid-19 in the winter would put recovery in jeopardy.
The offshore yuan traded 0.08 percent up at 6.8552 per dollar, where the green currency’s weakness helped the USDCNH pair to record its fifth weekly decline last week.
China’s CSI 300 index
dropped 0.58 percent to 4,816.22, erasing its earlier gains when it climbed to
its highest level since mid-2015.