Investing.com - Growth in China’s manufacturing sector unexpectedly rose in August as the official Purchasing Managers’ Index (PMI) jumped to 51.3, official data on Friday. Analysts previously expected the number to drop to 51.0 from July’s 51.2.
The service PMI also rose to 54.2 from 54.0 in July, the National Bureau of Statistics said.
A reading above 50 indicates expansion, while a reading below that signals contraction.
However, some analysts remained concerned over China’s economic conditions as data also showed export orders, an indicator for future activity, contracted for a third straight month. The sub-index slipped to 49.4, the lowest since February, from 49.8 in July.
Statistics bureau official Zhao Qinghe, in a statement accompanying the data, said the latest data showed China’s manufacturing sector is continuing to expand at a steady pace, although he admitted international trade concerns and “other external uncertainties” are hurting exports and imports.
The official PMI focuses on large, state-owned companies while another set of private manufacturing PMI readings, due Monday, focuses on small and medium-sized enterprises.
In July, both official and private PMI reading by Caixin and IHS Markit fell, with the private manufacturing index dropping to an eight-month low due to a decline in export orders.