Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
Final hours: unlock premium data with Claim 60% OFF
China's factory activity holds steady in September- Caixin PMI
Published Sep 29, 2021 09:56PM ET
Updated Sep 29, 2021 10:01PM ET
BEIJING (Reuters) - China's factory activity fared better than expected in September, stabilising after a slump in August, a business survey showed on Thursday, with a smaller decline in production countering an uptick in demand.
The Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) rose to 50.0 in September from 49.2 the month before, versus analyst expectations of 49.5 in a Reuters poll. The 50-mark separates growth from contraction on a monthly basis.
The Chinese economy recovered rapidly from a pandemic-induced slump last year but has since lost steam, with its sprawling manufacturing sector hit by COVID-19 outbreaks, higher costs, production bottlenecks, and more recently, power rationing.
China is in the grip of a power crunch due to a shortage of coal, tougher emissions standards, and strong demand from industry, triggering widespread curbs on electricity usage.
The output sub-index showed production fell for a second consecutive month but at a slower pace.
"The resurgence of the epidemic in several regions and shortfalls in raw material supplies slowed production at manufacturing companies," said Wang Zhe, senior economist at Caixin Insight Group, in comments released alongside the data.
China has also been dealing with ongoing small-scale coronavirus outbreaks in the southeastern province of Fujian and Heilongjiang province in the country's northeast.
"Surveyed enterprises said the rise in costs was mainly caused by a sharp increase in the prices of energy, industrial metals and electronic raw materials," said Wang.
New export orders slipped faster into contraction, the data showed, hitting the lowest level since February, as overseas demand cooled. Factories continued to lay off workers and at a quicker pace.
"The demand for consumer goods was weak, reflecting consumers' lack of purchasing power," said Wang, adding that demand for intermediate goods was higher.
A sub-index for new orders returned to expansion. Input prices rose at the fastest pace since May.
Higher raw material prices, especially of metals and semiconductors, have also pressured profits. Earnings at industrial firms slowed for a sixth month in August.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.