China’s manufacturing sector expanded in August indicating strongest growth since March, survey data from IHS Markit showed Monday.

The Caixin factory Purchasing Managers’ Index rose to 50.4 in August from 49.9 in July. A score above 50 indicates expansion.

Production grew at the fastest pace in five months but total new orders received was broadly stable.

Reflecting reduced raw material prices, the rate of reduction in input costs was the joint-quickest since January 2016.

Lower cost burdens and efforts to stimulate sales led firms to cut their output charges at a quicker pace in August, with the rate of discounting the steepest since December 2015.

The degree of confidence among manufacturers weakened from July, largely due to concerns over the ongoing China-US trade dispute and signs of a slowing global economy.

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