China's July PMIs mixed, as economy settles

Beijing

CHINA'S two gauges of the purchasing managers' index (PMI) painted a mixed picture of the economy, as large state-owned firms struggled and weak demand at home and overseas continued to weigh on output.

The official PMI unexpectedly shrank to 49.9 in July. A reading of 50 separates economic growth from contraction.

On the other hand, the Caixin PMI, a private independent survey more geared towards smaller, private firms, rose to 50.6 - the first positive reading in 17 months.

The National Bureau of Statistics attributed the sudden contraction of the official PMI to the intense flooding in the south of the country, which stal…