China PMI shows tech is more optimistic than other manufacturing sectors

China's tech executives were once again more optimistic than their counterparts in other manufacturing sectors, according to recent survey data -- extending the trend of the past few years.

Our charts compare the purchasing managers' index (PMI) for manufacturing industries as a whole to different subsets of this sector, including high-technology companies. A reading above 50 indicates that executives believe business conditions are improving.

High-tech PMI in China improved to 51.7 in August, up from a below-50 reading in July. By contrast, sentiment across manufacturing as a whole was slightly negative overall and deteriorating; the August reading was 49.1, down from 49.4.

As our first chart shows, tech manufacturers have usually been more optimistic than other goods makers -- especially during the shock of the pandemic.

Our second chart compares sectors. There is a spread in optimism between high tech, equipment makers, and the more pessimistic "high energy consumption" sub-group, which includes industries like metal processing, chemicals and petroleum.

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