China: Exporting factories grow for 9 consecutive months, a record in 5 years

WHAT HAPPENED

The activity of private Chinese factories rose to 51.5 points in August, up from 50.9. Their export orders grew for the ninth consecutive month, the longest streak in five years, although the official data showed contraction.

WHY IT MATTERS

Medium and small factories that sell abroad continue to find buyers despite tariffs and trade tensions. This can sustain industrial employment and keep many manufactured products cheap, but it increases pressure on factories in Mexico and other countries.

AND FOR YOUR PORTFOLIO

For a long-term investor, the signal is that global demand for Chinese products remains strong. Companies with supply chains in Asia may benefit from low costs; those competing with China face more pressure on prices and sales.