China Manufacturing Rebounds
A Chinese manufacturing gauge unexpectedly increased this month, suggesting export demand is helping the economy withstand a property slump.
The preliminary Purchasing Managers’ Index from HSBC Holdings Plc and Markit Economics was at 50.5, matching the highest estimates in a Bloomberg News survey of analysts and up from August’s final reading of 50.2.
The rebound will “come as a major relief to markets after numerous signs suggesting further downward pressure on the manufacturing sector,” said Dariusz Kowalczyk, senior economist at Credit Agricole CIB in Hong Kong.
Robust export demand is helping China weather a property slump. China’s trade surplus climbed to a record in August as exports rose on the back of increased shipments to the U.S. and Europe.
In the latest step aimed at supporting the sliding property market, China’s four biggest banks may loosen terms for mortgage lending.
China will keep a “steady and prudent” monetary policy stance, Ma Jun, the chief economist for the research bureau of the People’s Bank of China, wrote in a commentary last week in Financial News, which is published by the central bank.
Source: Bloomberg- China Manufacturing Rebounds
