China’s factory activity expanded in September, indicating a gradual improvement in the economy after the pandemic. However, economic growth remains uneven, with the property crisis dragging down progress.
China’s Factory Activity Expands in September, Indicating Economic Recovery
China’s factory activity in September showed signs of improvement, with the monthly purchasing managers’ index rising to 50.2, marking the first expansion in six months. The increase suggests that the world’s second-largest economy is gradually recovering from the effects of the pandemic. Measures of production, new orders, and employment all saw growth, although the manufacturing industry still faces some challenges in its recovery and development. The Chinese government has implemented measures to boost the economy and support entrepreneurs generating jobs and wealth.
China’s Nonmanufacturing Commercial Activities and Composite Indexes Improve
In addition to the expansion in factory activity, China’s nonmanufacturing commercial activities also showed improvement, with the index growing to 51.7. The composite index rose to 52, indicating an overall increase in economic activity. The latest indexes suggest that the level of economic activity is rebounding as government policies take effect. However, the economic recovery remains uneven, as the real estate sector is grappling with heavy debts and sluggish demand. Investment in real estate fell 8.8% compared to the previous year.
Near-Term Data and Observations on China’s Economic Recovery
Observers are monitoring additional data, including consumer spending during the eight-day autumn holiday period, to gauge the progress of China’s economic recovery. The break, which includes the Mid-Autumn Festival and National Day, is the longest week of public holidays since COVID-19 rules were eased. China State Railway Group Co. also reported a record daily high of 20 million passenger rail trips on Friday. China’s economy grew at a slower pace of 6.3% in the second quarter of 2023, causing concerns over unemployment rates and consumer spending.
Source : Factory Activity in China Grows for First Time in 6 Months
