Aug 03, 2020
Results of a private survey on Monday showed manufacturing activity expanded for the month of July.
The Caixin/Markit manufacturing Purchasing Managers’ Index (PMI) came in at 52.8 for July.
Economists polled by Reuters expected Caixin/Markit manufacturing PMI to come in at 51.3 for July as compared to 51.2 for June.
PMI readings above 50 indicate expansion, while those below that signal contraction. PMI readings are sequential and indicate on-month expansion or contraction.
On Friday, China reported official PMI that came in at 51.1 in July as compared to 50.9 in June, beating economists’ forecasts of 50.7. The expansion in China’s official PMI for the fifth straight month was due to demand for electrical and pharmaceutical goods.
The official PMI survey typically polls a large proportion of big businesses and state-owned companies. The private Caixin and IHS Markit survey features a bigger mix of small- and medium-sized firms.