China factory activity hits five-month high in September, private PMI shows
FXI•China’s manufacturing PMI rose to 52.1 in September from 51.5 in August, beating the 51.6 forecast. New export orders grew at their fastest pace in seven months.
1. Factory growth accelerates
The RatingDog China General Manufacturing PMI, compiled by S&P Global, climbed to 52.1 in September, its highest reading in five months and above the 50 mark that separates growth from contraction. Output grew at its fastest pace since April, while total new business increased at the quickest pace in five months.
2. Exports and employment rise
New export orders increased at their fastest pace in seven months, with firms citing stronger market conditions in several Asian economies. Employment returned to growth after stalling at 50.0 in August, as companies added staff amid capacity pressure.
3. Costs and outlook
Input prices rose at their fastest pace since May, driven by higher raw material and energy costs, particularly for metals and oil. Manufacturers slightly raised selling prices after a marginal decline in August, while firms remained optimistic about output over the next 12 months.
