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China's Caixin PMI Dips Below 50 for First Time in 11 Months

  • Private gauge contrasts with official reading remaining stable
  • Caixin manufacturing drop adds to evidence growth leveling off
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Photographer: AFP via Getty Images
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A private gauge of Chinese manufacturing fell back into contractionary territory in May, adding to recent evidence that the economy’s strong start to 2017 is leveling off.

The private measure -- with a smaller sample size -- contrasts with the government’s PMI reading released Wednesday, which indicated manufacturing was steady last month. The official report also suggested China’s factory recovery was spreading to the smaller and nimbler private sector as price pressures on them abate.