Analysis: Why China’s Two Manufacturing PMIs Are Diverging

(Editor’s note: The National Bureau of Statistics’ China manufacturing PMI is compiled from responses to questionnaires sent to purchasing managers at 3,200 companies in 31 key manufacturing sectors. The survey has greater representation of larger companies and state-owned enterprises.

The Caixin China manufacturing PMI is compiled from responses to questionnaires sent to purchasing managers at around 650 private and state-owned manufacturers across diverse sectors, spanning food products to basic metals and electrical equipment, and has greater representation from smaller, privately owned companies.

For both PMIs, a reading above 50 indicates an expansion in activity, while a reading below 50 indicates a contraction.)