China Manufacturing Expands in September

China Manufacturing Expands in September

The bank's closely watched purchasing managers' index for the month rose to 50.2 from 50.1 in August and well up from an 11-month low of 47.7 seen in July.

BEIJING -- China's manufacturing activity expanded for a second straight month in September, HSBC reported today, suggesting that the rebound in the world's second-biggest economy is building momentum.

The bank's closely watched purchasing managers' index for the month rose to 50.2 from 50.1 in August and well up from an 11-month low of 47.7 seen in July.

A reading higher than 50 signals growth. Anything below 50 indicates contraction.

"Though only slight, this was a positive development," the British banking giant said in a statement.

The news is the latest sign that the Asian economic giant is picking up speed after suffering a slowdown at the start of the year.

The economy registered growth of 7.7% in 2012 -- the worst performance in 13 years -- 7.7% in the first three months of this year and 7.5% in April-June.

But recent data, including strong exports and industrial output, have pointed to renewed strength.

China has refrained from introducing major stimulus measures, but in late July it announced a number of steps to bolster growth, including reducing taxes on small companies and encouraging railway development.

Authorities would likely maintain small-scale efforts to support growth, HSBC chief economist Qu Hongbin said in a statement.

"Growth is bottoming out on Beijing's mini-stimulus," Qu said. "We expect continuous policy efforts to sustain the recovery."

Copyright Agence France-Presse, 2013

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