China’s factory activity extended solid growth in September, twin surveys showed, as the nation’s crucial exports engine revved up on improving overseas demand and underlined a steady economic recovery from the coronavirus shock, reported Reuters.
The official manufacturing Purchasing Manager’s Index (PMI) rose to 51.5 in September from 51.0 in August, according to data from the National Bureau of Statistics (NBS) on Wednesday, remaining above the 50-point mark that separates growth from contraction for the seventh month. Analysts had expected it to pick up slightly to 51.2. The signs of stronger overseas demand were also highlighted in the Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI), which focuses more on small and export-oriented firms. Its gauge for new export orders rose at the fastest pace in over three years. “[W]e are entering a period of above trend growth, which should help absorb the remaining slack in the labour market and allow for some policy tightening next year,” said Julian Evans-Pritchard, senior China economist at Capital Economics, in a note to clients.
