China's factory activity expands for first time in six months, in latest sign economy is recovering
An official Chinese survey says the country's factory activity has recorded its first expansion in six months, providing another sign that the world’s second-largest economy is gradually improving following its post-pandemic malaise
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.China's factory activity in September recorded its first expansion in six months, an official survey said Saturday, providing another sign that the world's second-largest economy is gradually improving following its post-pandemic malaise.
According to the government statistics bureau and an official industry group, the monthly purchasing managers’ index rose to 50.2 this month from 49.7 in August measured on a 100-point scale. Numbers above 50 indicate activity is increasing.
Measures of production, new orders and employment all rose from August, the National Bureau of Statistics and the China Federation of Logistics & Purchasing said. But the bureau’s senior statistician, Zhao Qinghe, said the manufacturing industry still faces some difficulties in its recovery and development.
Since China lifted its tough COVID-19 restrictions, its leaders have been trying to boost the economy with a series of measures and promising to support entrepreneurs who generate jobs and wealth.
Performances in some sectors have shown improvements, including in factory output and retail sales. But China's property crisis is still dragging on its economic growth.
Official data say the index measuring non-manufacturing commercial activities grew to 51.7 from August's 51. The composite index rose to 52 from 51.3.
Zhao said the improvement indicated by the latest indexes suggest the level of economic activity is rebounding. As government policies take effect, positive economic factors are increasing, he said.
However, China's economic rebound remained uneven. Real estate developers are struggling to repay heavy debts in a time of slack demand. Last month, investment in real estate fell 8.8% from the year before.
The heavily indebted Chinese property developer China Evergrande Group Investment on Thursday suspended trading in its shares in Hong Kong. It said authorities had informed it that its chairman, Hui Ka Yan, was subjected to “mandatory measures in accordance with the law due to suspicion of illegal crimes”.
China's economy grew at a 6.3% annual pace in the second quarter of this year, much slower than the 7%-plus growth that analysts had forecast based on the anemic pace of activity the year before. Roughly one in five young workers is unemployed, a record high, adding to pressures on consumer spending.