Chinese Factory Activity Forecast Shows 17 Month High

China’s factory activity is forecast to have expanded at its fastest rate in 17 months in September, a Reuters poll showed, reinforcing signs of a turnaround in the world’s second-largest economy as both domestic and external demand improve.

The official manufacturing purchasing managers’ index (PMI) is forecast to rise to 51.5 in September from August’s 51, according to the median estimate of 14 economists. If realised, it would be the highest reading since April 2012.

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

A preliminary private PMI survey by HSBC/Markit released this week showed the factory sector grew at its fastest pace in six months in September.

The official PMI, which is weighted more towards bigger and state-owned companies, generally paints a rosier picture than the private survey, which focuses more on smaller and private sector firms.

via Reuters

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