China’s manufacturing output swung back to modest growth in August, private survey finds
China’s factory activity grew modestly among smaller manufacturers last month as export orders offset weakening domestic consumption, according to a private survey.
The Caixin/S&P Global manufacturing PMI came in at 50.4 in August, according to data released Monday, beating the median estimate of 50.0 in a Reuters poll. The latest figure also reflects a rebound from the contractionary level of 49.8 in July.
The private gauge, which focuses on smaller and export-oriented companies, came in contrast with the broader official PMI data released Saturday, which showed the country’s manufacturing activity extended declines to a six-month low at 49.1.
“The divergence is about the better export orders [as] global demand is relatively resilient compared to China’s domestic demand,” Gary Ng, APAC economist at Natixis, told CNBC’s “Squawk Box Asia” Monday morning. But with geopolitical risks on the rise, Ng noted, “who knows how long it will last.”