China’s manufacturing activity continues to expand in September - Markit/Caixin

Markit/Caixin’s survey revealed Wednesday that activity in China’s manufacturing sector continued to expand in September, albeit at a marginally slower pace than in August.

According to the report, the Caixin/Markit manufacturing purchasing managers' index (PMI) came in at 53.0 in September, down slightly from 53.1 in August, signaling a further solid improvement in the health of the manufacturing sector.  

The 50 mark divides contraction and expansion.

Economists’ had predicted the reading to stay at 53.1.

The rate of new order growth was the steepest recorded since the start of 2011, while new export business expanded at the quickest pace since August 2017 and production growth remained marked. Furthermore, employment stabilized in September, ending an eight-month period of job shedding.

Commenting on the China General Manufacturing PMI data, Dr. Wang Zhe, Senior Economist at Caixin Insight Group noted: “…the economic recovery has picked up its pace after the epidemic, with both the supply and demand improving. The sharp rise in overseas demand has complemented the domestic market. Manufacturers remained confident about the economy for the next 12 months and they were no longer reluctant to add to their inventories. The strength of the manufacturing sector will take some of the pressure off policymakers going forward. However, the job market remains worrisome, as the improvement in employment relies on a longer-term economic recovery and a more stable external environment. In the near future, great uncertainties remain about the overseas pandemic and the U.S. presidential election."