There is no end in sight for China's uneven economic recovery

Factory activity in China’s private sector expanded at the fastest rate in three years, indicating strong domestic and international demand for Chinese goods. This contrasts with a government survey showing contraction among larger, state-owned manufacturers, highlighting the uneven recovery in China’s economy. The Caixin manufacturing Purchasing Managers’ Index rose to 51.8 in June, beating expectations and marking the sixth straight month of improvement. Analysts believe the divergence between the Caixin and official PMIs is due to differences in the sectors surveyed. While manufacturers show concerns about future output expectations, exports and consumption remain strong. The EU and US have announced tariffs on Chinese goods, dampening manufacturers’ sentiment.