China’s economy stabilizes and factory activity rebounds Reuters

Por Ryan Wu and Tina Qiao

BEIJING, Sept 30 (Reuters) – Chinese factory activity grew for the first time in six months in September, according to an official survey released on Saturday, adding to a series of indicators that the world’s second-largest economy is beginning to bottom out.

The Purchasing Managers’ Index (PMI), based on a survey of major manufacturers, rose to 50.2 from 49.7 in September, according to the Office for National Statistics, surpassing the 50-point mark. 50.0 exceeded the prediction.

The PMI, the first official figure for September, added to signs of stabilization in the economy, which slumped after an initial boost earlier in the year when China’s ultra-restrictive COVID-19 policies were lifted.

Early signs of improvement emerged in August, with factory production and retail sales growth accelerating, while declines in exports and imports eased and deflationary pressures eased. Industrial firms’ profits rose a surprising 17.2% in August, reversing July’s 6.7% decline.

“Manufacturing PMI, together with good industrial profit figures, suggest that the economy is gradually bottoming out,” said Zhou Hao, chief economist at Guotai Junan International.

China’s non-manufacturing PMI, which includes sub-indices for service sector activity and construction, rose to 51.7 from 51.0 in August.

The composite PMI, which includes manufacturing and non-manufacturing activities, rose to 52.0 in September from 51.3 in August.

(Reporting by Ryan Wu, Tina Qiao and Joe Cash; Editing in Spanish by Juana Casas)

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