China PMI Adds to View Economy is Steadying

China’s factories posted their strongest growth in at least 1-1/2 years in July as new orders surged to multi-month highs, two surveys showed on Friday, cementing bets that the economy is re-gaining momentum after a spate of stimulus measures.

The official Purchasing Managers’ Index (PMI) issued by the government climbed to a 27-month high of 51.7 in July, beating forecasts for 51.4.  A separate PMI published by HSBC/Markit also rose to 51.7, its best performance in 18 months.

A reading above 50 indicates an expansion in activity on a monthly basis, and below that a contraction.  Analysts welcomed the data as a sign that the world’s second-biggest economy is enjoying a revival after a rocky spell prompted authorities to launch a volley of support measures, including increasing bank lending to spur growth.

Reuters

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