Trading Economics, an excellent statistical site, reports new data on China's factory activity which shows continued momentum. The Caixin Index which Trading Economics reports is more focussed on medium and smaller companies than China's official manufacturing PMI index - which mainly deals with larger companies. The strength in the Caixin index is therefore an indicator economic growth is spreading widely through the economy. This data is, of course, yet another nail in the coffin of 'China hard landing' analysis in the West. The key points of Trading Economics analysis are the following:
'The Caixin Manufacturing PMI in China rose to 51.1 in July of 2017 from 50.4 in June and beating market consensus of 50.4. It was the second straight month of expansion in factory activity and the fastest since March. Both output and new orders rose the most in five months while new export orders rose at the second-fastest rate since September 2014. In addition, buying activity went up for the second month running, contributing to a renewed increase in stocks of inputs. At the same time, both input prices and output charges rose at faster rates.... " Operating conditions in the manufacturing sector improved further in July, suggesting the economy’s growth momentum will be sustained," " said Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group. Manufacturing PMI in China is reported by Markit Economics.'