China’s manufacturing rose to a six-month high in September, in the latest sign that the world’s second biggest economy is gradually recovering from a prolonged slowdown.
The preliminary version of HSBC’s purchasing managers’ index released Monday climbed to 51.2 from 50.1 in August on a 100-point scale. Numbers above 50 indicate an expansion in activity.
The survey is another encouraging sign for China’s leaders as they try to reverse a slowdown that dragged down growth to a two-decade low of 7.5 percent in the latest quarter. It adds to other recent indicators including improved trade, factory output and auto sales, that suggests the slowdown is leveling out.
HSBC’s survey found output, new orders and work backlogs all increased at a faster rate during the month. New export orders also rose.
“The firmer footing was supported by simultaneous improvements of external and domestic demand conditions,” HSBC China economist Qu Hongbin said.
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