China saw an improvement in the manufacturing sector in September due to rising new orders and infrastructure spending, according to the National Bureau of Statistics data. However, the data also suggested that factory production remained in contraction for a fifth straight month.
Private Caixin manufacturing PMI recorded 51.4 in September, the highest reading in 19 months. The improved results followed a slowdown in economic activity in August, with industrial output growing at the slowest pace in more than 17 years.
The official manufacturing PMI reading rose to 49.8, lower than expectations of 49.6 and the previous reading of 49.5, but still below 50, which separates expansion from contraction.
The non-manufacturing PMI showed a slight retreat to 53.7 in September from 53.8 in August. That came beneath analysts’ projections of 53.9.
One of the main factors of this economic recovery is the improvement in trade developments between representatives of the United States and those of China during the recent period, as well as the postponement of the United States on Chinese goods for two weeks.
Along with trade war improvements, the government has been trying to stimulate domestic demand for more than a year by increasing infrastructure spending.
However, policymakers are widely expected to unveil more fiscal and
monetary support measures in the coming months.