China’s Economy Rebounds: Factory Activity Signals Stabilisation

China’s economy is showing signs of stabilisation as factory activity expands for the first time in six months. The Purchasing Managers’ Index (PMI), which measures the performance of major manufacturers, rose to 50.2 in September, up from 49.7. This figure is above the critical 50-point threshold, indicating a shift from contraction to expansion. Economists had predicted a reading of 50.0, this was confirmed by Reuters on 30 September 2023.

The improvement in the PMI, the first official data for September, is part of a broader trend suggesting that China’s economy is gradually recovering. Earlier in the year, the economy faced challenges as it emerged from the strict COVID-19 restrictions.

Preliminary indications of recovery appeared in August. During that month, factory output and retail sales saw growth, while declines in exports and imports narrowed, and deflationary pressures eased. In an unexpected turn, industrial firms’ profits surged by 17.2% in August, rebounding from a 6.7% decline in July.

Zhou Hao, chief economist at Guotai Junan International, commented on the situation, saying, “The manufacturing PMI, along with the robust industrial profit figures, suggests that the economy is gradually bottoming out.”

China’s non-manufacturing PMI, which measures the service sector and construction, also showed growth, with a reading of 51.7 in September compared to August’s 51.0.

The composite PMI, which combines both manufacturing and non-manufacturing activities, climbed to 52.0 in September, up from 51.3.

Economists are now closely monitoring consumer spending as China’s longest public holiday of the year, “Golden Week,” unfolds. The holiday started with the Mid-Autumn Festival, followed by the National Day break until 6 October.

In an optimistic start to the holiday period, rail passenger travel reached a single-day record of 20 million trips on Friday 29 September, according to state media reports. Authorities had predicted this to be “the most popular Golden Week in history.”

- Video Advertisement -

Related Post

Thai office space vacancy rate rises 26.3%, Yet Thailand’s richest billionaire optimistic about market demand growth

Bangkok’s office vacancy rate in prime Grade A buildings has soared to 26.3%, reflecting a growing oversupply, but Frasers Property Limited, led by Thailand’s wealthiest scion, is betting on the US-China trade feud to drive demand for office and industrial spaces across Southeast Asia, according to bangkokpost on 19 September 2024. With a US$3.6 billion […]

Thailand’s USD 6.5 Billion EV Industry Set to Power Commercial Real Estate Growth

Thailand’s fast-growing electric vehicle (EV) industry is projected to generate a real estate market worth at least USD 6.5 billion by 2030, driven by government policies and strong foreign investments. As the country aims to solidify its position as Southeast Asia’s leading hub for EV manufacturing, this growth will fuel demand for specialised real estate […]

Cambodia Maintains the World’s Highest Central Bank Interest Rates, Defying Global Trends

In the third quarter of 2024, Cambodia continues to lead global markets, with central bank interest rates soaring between 10% and 12%, starkly contrasting with the 0% to 6% range maintained by most major economies. This divergence, detailed in a report by CBRE Cambodia published on 17 October 2024, spans from December 2021 to December […]

Cambodia’s Construction Investments Struggle to Recover as 2024 Sees Significant Drop

Cambodia’s construction sector continues to face a challenging period, with approved investment projects in 2024 falling to about 2,190, valued at under USD 4 billion, a stark contrast to the nearly 4,841 projects worth approximately USD 12 billion in 2020. The latest report from the Ministry of Land Management and Urban Planning, presented by CBRE […]

Cambodia’s Tourism Rebounds to Near Pre-Crisis Levels, But Chinese Arrivals Lag Behind Regional Peers

Cambodia’s tourism sector is witnessing a robust rebound in 2024, with international arrivals reaching 4.4 million in the first eight months, a 22.5% surge compared to the same period last year. This strong performance brings the country within 1.6% of its pre-crisis peak of 6.9 million visitors in 2019, highlighting the sector’s steady recovery after […]

PwC Slapped with Record USD 62.2m Fine and Six-Month Ban Over Evergrande Audit Failures

PwC Zhong Tian, the China arm of the global accounting giant, has been fined a record USD 62.2 million and banned from auditing for six months for its failure to identify financial misstatements in China Evergrande Group’s accounts between 2018 and 2020. The penalties, the most severe imposed on an audit firm in China, are […]