China says manufacturing activity expanded in September

An employee works on the production line of a textile factory on September 12, 2020 in Huai’an, Jiangsu Province of China.

Zhou Changguo | Visual China Group | Getty Images

China on Wednesday announced that manufacturing activity expanded in the month of September.

The official manufacturing Purchasing Manager’s Index (PMI) for the month of September came in at 51.5 as compared to 51.0 in August, according to the National Bureau of Statistics.

Analysts polled by Reuters had expected the official manufacturing PMI to come in at 51.2 in September.

PMI readings above 50 indicate expansion, while those below that signal contraction. PMI readings are sequential and indicate on-month expansion or contraction.

China’s manufacturing sector was hit earlier this year as factories shut due to large-scale lockdowns to contain the coronavirus pandemic.

Another set of factory data will be released later on Wednesday by Caixin and IHS Markit. The private survey features a bigger mix of small- and medium-sized firms. In comparison, the official PMI survey typically polls a large proportion of big businesses and state-owned companies.

Analysts polled by Reuters expect the Caixin/Markit PMI for September to come in at 53.1 — the same level as August.

Leave a Reply