The PMI moved back above the 50.0 mark for the first time in six months during August. At 50.5, the index was up from 48.7 in July, and pointed to a marginal monthly improvement in business conditions in the sector.
Firms expanded their purchasing activity accordingly, but employment continued to fall marginally as firms were reluctant to take on extra staff given still fragile demand.
Renewed increases in prices were also recorded midway through the third quarter. Input costs rose for the first time in four months, while selling price inflation was signaled for the first time since March.
According to S&P Global, the nascent recovery in the health of the sector reflected tentative signs of demand improving.
Manufacturers recorded a first increase in new orders for six months, while new export business also rose following a five-month sequence of decline. Growth rates were modest, however, amid some reports of ongoing demand fragility, it noted./.
