Growth in China's factory sector accelerated to a six-month high in September, a preliminary survey showed on Monday, as stronger domestic and foreign demand added to recent signs of a tentative turnaround in the world's second-largest economy.
The flash HSBC Purchasing Managers' Index (PMI) climbed to 51.2 this month from August's 50.1, hitting a high not seen since March. A breakdown of the data showed ten of 11 sub-indices rose in September.
The flash PMI gives the earliest reading of China's monthly economic performance, and should cheer investors worried about a sharp economic slowdown after a previous rebound in activity proved short-lived.
A PMI reading over 50 points indicates expanding activity while one below that suggests contraction.
Monday's PMI joins other data earlier this month suggesting China's economy has bottomed out, with factory activity growing at its fastest in 17 months in August, comfortably surpassing expectations.
Exports also fared better than expected last month, as sales to southeast Asia and the United States boosted performance
Qu Hongbin, a HSBC economist, said the pick-up in manufacturing would give China's authorities scope to restructure the economy and boost domestic consumption, thereby cutting dependence on exports and investment.
