China reported Thursday that its official manufacturing Purchasing Managers’ Index for the month of August came in at 51.7 — above expectations.
Analysts polled by Reuters expected China to post official PMI of 51.3 for August, a tick down from 51.4 in July.
A reading above 50 indicates expansion, while a reading below that signals contraction.
China’s manufacturing sector has been posting solid growth thanks to domestic infrastructure spending and a recovery in exports. That has mitigated some concerns about slowing growth and high debt levels that could derail the world’s second-largest economy.
Official services PMI meanwhile fell to 53.4 in August from 54.5 in July, the lowest since May 2016.
While the manufacturing PMI data tends to be more closely watched, China’s pivot toward domestic consumption and away from investment-led growth means the services sector accounts for a bigger slice of the mainland economy. The services sector includes consumer industries such as real estate, retail and leisure.
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