Growth in China’s factory sector accelerated to a six-month high in September, a preliminary survey showed on Monday, as stronger domestic and foreign demand added to recent signs of a tentative turnaround in the world’s second-largest economy.
The flash HSBC Purchasing Managers’ Index (PMI) climbed to 51.2 last month from August’s 50.1, hitting a high not seen since March. A breakdown of the data showed ten of 11 sub-indices rose in September.
The flash PMI gives the earliest reading of China’s monthly economic performance, and should cheer investors worried about a sharp economic slowdown after a previous rebound in activity proved short-lived.
Notably, new export orders jumped to a ten-month peak of 50.8, up sharply from August’s 47.2. It was the first time in six months that exports -- an Achilles’ heel in China’s economy -- had shown growth in the PMI.
A PMI reading over 50 points indicates expanding activity while one below that suggests contraction.
Monday’s PMI joins other data earlier this month suggesting China’s economy has bottomed out, with factory activity growing at its fastest in 17 months in August, comfortably surpassing expectations.