China's production, new orders rise in Sept 2022

02 Oct '22

1 min read

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Factory activity in China expanded in September with rise in production and new orders, reflecting a momentum in economic recovery amid a better domestic COVID-19 situation and intensified macroeconomic policy support, according to officials and experts. The official purchasing managers’ index (PMI) for manufacturing was 50.1 in the month, up from 49.4 in August.

A PMI reading above 50 indicates expansion, while a reading below that number reflects contraction.

The sub-index for production stood at 51.5 in September, up by 1.7 points from the previous month, , data from the National Bureau of Statistics (NBS) showed.

Demand continued to increase as the sub-index for new orders rose 0.6 point from August to 49.8, NBS said.

"As measures of stabilising the economy continued to take effect in September and the negative effects of heat waves waned, manufacturing PMI has bounced back to expansionary territory," senior NBS statistician Zhao Qinghe was quoted as saying by official Chinese media.

China's non-manufacturing PMI was 50.6 in September, down from 52.6 in August.

Experts, who expect further fiscal and monetary easing, such as proactive infrastructure spending, as well as supportive credit to manufacturing and realty, have cautioned against downward pressures and uncertainties both at home and abroad.

Fibre2Fashion News Desk (DS)

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