China's July PMI hits 27-month high on strong factory orders
PMI data suggests economy is regaining momentum after stimulus measures
Activity in the mainland's factory sector expanded last month at the fastest pace in 27 months on stronger demand, a government survey showed, adding to evidence that the economy is regaining momentum after a burst of government stimulus measures.
The official manufacturing purchasing managers' index rose to 51.7 - the strongest since April 2012 and up from 51 in June - the National Bureau of Statistics said yesterday. Economists had expected a reading of 51.4.
A number above 50 indicates an expansion in activity while one below that level points to a contraction.
The official survey showed a broad-based recovery in manufacturing activity, with 10 out of the 12 sub-indices pointing to improvement from June.
A sub-index for new orders, a measure of both foreign and domestic demand, rose to 53.6 from 52.8, the highest level since May 2012.
Export orders edged up to 50.8 from 50.3, indicating a modest pickup in global demand.
As one of the leading indicators that help gauge economic momentum, the official PMI data is closely watched by the market, and an improvement in the reading could bode well for other July indicators.