Pick which data to believe: China’s manufacturing sector is either growing or it’s not

According to the HSBC/Markit Economics survey of purchasing managers, China’s manufacturing sector slowed in July with the PMI for manufacturing falling to 47.7 from 48.2 in June. In this survey any reading below 50 indicates contraction. The 47.7 reading is an 11-month low. But official data released by the government yesterday put the PMI for manufacturing at 50.3 and in expansion territory rather than contraction.