China Official PMI Hit a Three Month High

China’s factory activity in August may have expanded at the fastest pace in three months, a Reuters poll showed, adding to evidence that the world’s second-largest economy may be stabilizing after slowing for more than two years.

The median forecast of 12 economists polled by Reuters showed China’s official manufacturing managers’ index (PMI) in August may have risen to 50.6 from July’s 50.3.

A reading above 50 indicates expanding activity while one below it points to a contraction.

Beijing has stepped up efforts in recent months to prevent a sharp economic slowdown by quickening railway investment and public housing construction and introducing a series of measures to help smaller companies, which could sustain the revival of internal demand in the coming months.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza