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China Factory Activity Highest Since 2011, Private Gauge Shows

Published 03/08/2020, 03:10
Updated 03/08/2020, 04:36
© Reuters.

(Bloomberg) -- China’s factory activity grew at a faster pace in July than at any point since January 2011, as the economic recovery gained momentum, a private gauge showed Monday.

The Caixin Manufacturing Purchasing Managers’ Index rose to 52.8 last month from June’s 51.2, beating the median estimate of 51.1. The 50-level separates expansion in activity from contraction. That’s in line with official data released last week that showed a slight acceleration from the previous month.

“Flare-ups of the epidemic in some regions did not hurt the improving trend of the manufacturing economy, which continued to recover as more epidemic control measures were lifted,” said Wang Zhe, senior Economist at Caixin Insight Group, which released the data. “However, we still need to pay attention to the weakness in both employment and overseas demand.”

The Caixin manufacturing PMI focuses on smaller and private companies, while the official manufacturing PMI covers larger, state-owned enterprises.

©2020 Bloomberg L.P.

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