According to a private-sector survey, China’s factory activity expanded for the third consecutive month in January. The Caixin China manufacturing purchasing managers’ index (PMI) was 50.8, the same as in December and higher than the expected reading of 50.6. This contrasts with the official manufacturing PMI, which showed a fourth consecutive monthly contraction. The divergence is attributed to differences in survey samples, with the Caixin PMI surveying more export-oriented manufacturers. Both surveys showed a decline in employment and weak price levels, with China teetering on the verge of deflation for the last nine months.