Vogon Today

Selected News from the Galaxy


All the positive economic trends in China. Wsj report

All the positive economic trends in China. Wsj report

China's economic rebound is accelerating according to the Wall Street Journal, here's how and why

The Chinese economy experienced an increase in global demand in September, and government support measures boosted factory activity and helped drive sentiment in the service sector to the highest levels of the past seven years. China's official index in the manufacturing sector climbed to 51.5 in September, according to data released Wednesday by the National Bureau of Statistics, higher than the forecast of 51.2 and the August reading of 51.0 – the WSJ reports .
A separate private indicator of manufacturing activity, the Caixin China manufacturing purchasing managers index, came in at a robust 53.0, roughly in line with the previous month's level. Readings above 50 suggest an expansion in activity, with higher numbers indicating a broader trend. The service sector in China, a weak link in the economy for much of the summer due to lingering coronavirus concerns, also turned into a strong September. China's official non-manufacturing PMI, which includes both the services and construction sectors, rose to 55.9 in September, its highest since November 2013 and better than the previous month's reading of 55.2.

Improvement in the service sector, which Goldman Sachs says accounts for around 80% of the weighting in the non-manufacturing PMI, was helped by a rebound in the transportation, hotel and restaurant sectors as consumers appeared more willing to travel and to spend, the Chinese statistical office said. Officials expressed hope that China's eight-day holiday, which begins Thursday, will further boost consumer spending nationwide as resorts launch promotional campaigns. Lu Ting, Nomura's Chinese chief economist, told customers in a statement that the holiday "is likely to present good numbers for retail sales and tourism due to both pent-up demand, government promotions and restrictions on overseas travel." .

China's retail sales, a major measure of domestic consumption and the last drag in negative territory among China's leading economic indicators for much of the year, finally returned to growth in August for the first time this year. , recording an increase of 0.5% over the previous year. Consumer sentiment had been depressed by fears of infection and high unemployment rates.

As for the manufacturing sector, both official and private measures indicated an improvement in demand from foreign markets. The official export orders sub-index rose for the first time this year in expansionary territory, while the Caixin survey showed that export orders reached a three-year high.
China's export machine has repeatedly beaten economists' gloomy expectations this year. The country's relatively rapid resumption of factory activity in the spring made it possible to manufacture medical equipment and electronic products for work while the rest of the world struggled against the pandemic.

While some economists expect demand for pandemic-related goods to decline in the coming months, Zhou believes the rebound in global demand will continue to support Chinese exports.
On the job front, both the official report and the Caixin PMI report showed a further increase in hiring in September.

(Extract from the foreign press review by Epr)

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/mondo/tutte-le-tendenze-positive-delleconomia-in-cina-report-wsj/ on Sun, 04 Oct 2020 04:46:06 +0000.