What happens in factories in China according to the Financial Times
The Caixin Manufacturing Purchasing Managers Index, a private sector survey, surpassed expectations to hit 52.8 in July, the highest level in nine years. A figure of over 50 indicates an expansion from the previous month.
The reading reflects a rebound in activity after a sharp contraction earlier this year when the country was in isolation due to the coronavirus pandemic. The Chinese economy returned to growth in the second quarter and factory activity increased in each of the last three months.
Separate surveys of South Korean and Japanese manufacturing sectors in July also showed that the countries had their best results since February, although neither country has returned to growth.
South Korea's export-dependent economy was partly buffered by exports of electronics, especially computer chips, which continued to see solid demand and prices in a boom in online business – such as streaming content and gambling – fueled by work from home.
The business of Chinese factories expanded despite the outbreak of local coronavirus epidemics.
"Overall, the outbreaks of the epidemic in some regions did not damage the improving trend of the manufacturing economy, which continued to recover with the abolition of further epidemic control measures," said Wang Zhe, senior economist. by Caixin Insight Group.
After the first annual decline of more than four decades at the beginning of the year, China's gross domestic product increased by 3.2 percent in the second quarter compared to the same period in 2019. The return to growth was fueled by the sustained industrial sector. from the state, but the data shows that retail sales continued to suffer.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/mondo/cina-fabbriche-ripresa-coronavirus/ on Sat, 08 Aug 2020 05:12:17 +0000.