Hong Kong, China (4E) – The Chinese manufacturing sector grew at a faster than expected rate in July, according to the final purchasing managers index (PMI) from HSBC and Markit Economics published on Friday.
The PMI score of 51.7 was lower than the preliminary or flash index reading of 52.0, which is what predicted by analysts, although it is still significantly higher than June’s 50.7.
A PMI reading above 50 indicates growing activity in manufacturing sector on month, while a reading below 50 indicates contraction in the sector.
On Friday, the China official manufacturing PMI was also released, which came in at 51.7, according to the National Bureau of Statistics, surpassing economists’ forecast of 51.4 and higher than June’s 51.0. The reading marks a 27-month high.
The official PMI’s small businesses subindex jumped to 50.1 in July, the first time the figure was above 50 since April 2012.