China’s September factory activity sustains momentum: Caixin
CHINA’S manufacturing activity expanded in September for a second straight month, adding to signs that the worst of this year’s economic downturn is passing.
The Caixin manufacturing purchasing managers’ index (PMI) came in at 50.6 last month, Caixin and S&P Global said in a statement on Sunday (Oct 1).
That was below economists’ expectations, but it still marked growth at a time of economic upheaval for the country.
Caixin’s services index was 50.2 for the month, also growing slightly. Services have been in expansion since January, suggesting some resilience for one of the economy’s main growth drivers this year.
The positive readings add to tentative evidence that targeted policies to help the economy are having some effect.
The private survey comes after official PMIs on Saturday showed manufacturing activity returning to expansion for the first time since March. Non-manufacturing data – which includes services and construction activity – also outperformed expectations, though the services sector has been growing at a slower pace in recent months. The Caixin survey covers mainly smaller and export-oriented businesses in China compared with the official PMI.
China’s economy has been challenged this year by a property crisis and weak consumer and business confidence, prompting Beijing to roll out some supportive measures. Authorities have boosted local government borrowing for infrastructure and loosened monetary policy.
Recent key data has suggested a bottoming out in some areas, though obstacles to growth remain. Economists cut their forecasts for gross domestic product expansion in a Bloomberg survey last month, projecting that the country may just about meet its growth target of around 5 per cent for the year as real estate remains a drag.
President Xi Jinping last Thursday vowed to step up efforts to meet the country’s economic targets at a speech marking the 74th anniversary of the founding of the People’s Republic of China.
Share with us your feedback on BT's products and services
