Official China PMI lifts in July, but HSBC numbers beg to differ

HONG KONG – Sharp conflict has emerged between official and private sector figures making up China’s Purchasing Managers’ Index (PMI) for July. The official National Bureau of Statistics PMI rose to 50.3, maintaining a +50 reading for a 10th consecutive month. The increase was broad-based, as readings for both large and small firms rose, reflecting an improvement in both domestic and external demand. However, the HSBC PM released almost simultaneously fell to 47.7 (exactly in line with last week’s HSBC PMI Flash estimate) from 48.2 in June, recording a sub-50 reading for a third month in a row.