Shillong, October 3: China’s manufacturing sector is showing signs of recovery, offering hope that the country’s economy is regaining momentum after a significant slowdown earlier this year, according to a media report.
The official manufacturing purchasing managers’ index (PMI) for China increased to 50.2 in September, up from 49.7 in August, marking the first expansion since March, as reported by CNN. A PMI reading above 50 indicates growth, while below 50 signifies contraction.
Additionally, activity in services and construction sectors also accelerated, with a separate index reaching 51.7, its highest level in three months.
A private gauge of activity released earlier indicated that China’s economy continues to grow, though at a slower pace than the previous month. The PMI data from Caixin Media and S&P Global revealed that both manufacturing and services showed some signs of losing momentum.
Economists suggest that the official PMI survey primarily covers larger, state-owned enterprises, while the Caixin reading focuses on smaller, private firms.
These positive PMI readings align with the belief that the Chinese economy may be rebounding after GDP growth slowed to just 0.8% in the June quarter compared to the previous three months. This slowdown was attributed to the fading post-pandemic boom, waning consumer confidence, and a significant property market slump.
Encouragingly, robust travel figures during China’s annual “Golden Week” holiday have also contributed to cautious optimism. The holiday, spanning eight days until October 6, witnessed record-breaking travel numbers, with the national railway handling 20.1 million passenger trips on the first day and an estimated 66 million vehicles on the roads, according to CNN.
