Activity in the large Chinese industry grew unexpectedly in August, the first time in three months. This is made public by research agencies Markit and Caixin.
The purchasing managers’ index for August was 50.4, compared to 49.9 a month earlier. That is the highest level in five months. A position of 50 or more indicates growth, below which – shrinkage. Economists generally expected PMI at a level of 49.8.
A comparable indicator of the Chinese government for industry did show a slight contraction for August. That position was 49.5. This indicator has been below the level of 50 for four months in a row now. The figures of the government focus more on the large Chinese state-owned companies, while Caixin and Markit focus more on smaller private companies that are focused on export. The latter are more sensitive to the consequences of the trade war.