Growth in China's nationwide factory activity decelerated in September, according to a private gauge that gave a weaker reading for the manufacturing sector than official data.
The Caixin China manufacturing purchasing managers' index slipped to 51.0 in September from 51.6 in August, indicating slower growth in the level of activity, Caixin Media Co. and research firm Markit said Saturday.
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The result contrasted with a competing official gauge that reached its strongest level in more than five years in September.
"The manufacturing sector continued to expand in September, although at a slightly weaker rate. The Chinese economy was stable in the third quarter. But the outstanding price pressure from upstream industries will be a drag on the continued improvement of company's' profitability," Zhengsheng Zhong, an economist at CEBM Group, said in a statement accompanying Saturday's release.
Subindexes of output and new orders rose at a slower pace in September, Caixin said.
The softer Caixin PMI reading comes after China's official manufacturing PMI, a competing government gauge, rose to 52.4 in September from 51.7 in August, according to figures released Saturday by the National Bureau of Statistics.
The Caixin China Manufacturing PMI is based on data compiled from monthly replies to questionnaires sent to purchasing executives at more than 400 manufacturing companies. Compared with the official gauge's coverage of firms including large state-owned companies, the Caixin PMI tends to track more closely small private manufacturers in China.
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(END) Dow Jones Newswires
September 29, 2017 22:22 ET (02:22 GMT)