BEIJING: China’s manufacturing sector saw a surprise pick-up in September, a closely watched survey showed Tuesday, providing some respite after a string of weak data pointing to a slowdown in world’s second-largest economy.
HSBC said its preliminary purchasing managers index (PMI), which tracks activity in China’s factories and workshops, advanced to a two-month high of 50.5, higher than a final reading of 50.2 in August.
A reading above 50 indicates the sector is expanding.
Concerns over China’s economy a key driver of global growth have intensified following a string of lacklustre recent data, with economists calling for authorities to take further action to kickstart growth.
Qu Hongbin, HSBC’s chief economist for China, said that while the result indicated manufacturing sector activity was stabilising this month, expansion was still modest.
“The property downturn remains the biggest downside risk to growth,” he said in the statement.