Data: China’s Manufacturing Sector Shows Signs of Strength
New data suggest that the Chinese economy is on the path to a rebound. According to a report released by Markit, the flash Purchasing Managers’ Index for manufacturing rose in the month of September to 51.2, up from 50.1 in the month of August. This beats the consensus expectation, which would have placed the number at slightly below 51, and represents the second straight month of increases with the value significantly above July’s statistic of 47.7. This could put the average for the third quarter to 49.6, which is very close to the benchmark of 50 that signals economic expansion in the sector in question.
The news was welcome to stock markets in the country, with the Shanghai Composite Index gaining over 1 percentage point and the Australian dollar also performing well. The statistics hint that China could very well be on pace to match its 7.5 percent growth target for its economy in the year of 2013.
Though some estimates by Wall Street firms exceed that threshold due to recent adjustments that are banking on higher growth in the fourth quarter, the numbers give confidence to statements made by Chinese officials, who have stuck by their goal even as economic indicators turned sour earlier this summer.