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Aug. 17: Visitors watch robotic arms being assembled into a vehicle’s chassis at the annual World Robot Conference at the Etrong International Convention and Exhibition Center outside Beijing.
BEIJING (AP) — China’s factory activity posted its first expansion in six months in September, according to an official survey released Monday, offering another sign that the world’s second-largest economy is gradually overcoming its post-pandemic malaise.
According to government statistics and an official industry group, the monthly purchasing managers’ index rose to 50. 2 this month from 49. 7 in August, measured on a 100-point scale. Numbers above 50 imply that activity is increasing.
Measures of production, new orders and employment rose since August, the National Bureau of Statistics and the China Federation of Logistics and Purchasing said. But the bureau’s chief statistician, Zhao Qinghe, said production still faces some difficulties in its recovery and development.
Since China lifted its strict COVID-19 restrictions, its leaders have been seeking to stimulate the economy with a series of measures and promises to marketers that generate jobs and wealth.
Performance in some sectors showed improvements, in commercial production and retail sales. But China’s asset crisis continues to hold back its economic growth.
According to official data, the index measuring non-manufacturing business activity rose to 51. 7 from 51. 3 in August. The composite index rose from 51. 3 to 52.
Zhao said the improvement indicated through the latest indices suggests economic activity is recovering. As government policies take effect, economic dots rise, he said.
However, China’s economic recovery has remained uneven. Real estate developers are struggling to pay off large debts in an environment of low demand. Last month, real estate investment fell 8. 8% from a year earlier.
Chinese asset promoter China Evergrande Group Investment, heavily indebted, suspended trading in its shares in Hong Kong on Thursday. He said the government had informed him that its president, Hui Ka Yan, had been subjected to “mandatory measures according to suspicions of unlawful crimes. “
Observers are keeping an eye on other short-term data, adding that customers are spending the eight-day fall break that began Friday. The break, which covered Friday’s Mid-Autumn Festival and also includes Sunday’s National Day, is the longest week of public holidays since COVID regulations were eased in December.
China State Railway Group Co. recorded a record 20 million passenger exercise trips on Friday, official Xinhua news firm reported.
China’s economy grew at an annual rate of 6. 3% in the second quarter of 2023, much slower than the more than 7% expansion analysts had forecast due to the anemic speed of activity last year. About one in five young employees is unemployed, a record high adding to pressures on customer spending.
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