Sept. 1 (Bloomberg) -- Manufacturing in China grew at a faster pace in August after the weakest performance since early 2009 in July, signaling that the economyâs slowdown is stabilizing.
The purchasing managersâ index rose to 51.7 from 51.2, exceeding forecasts, a government-backed report showed. Seasonal factors might have had an effect because the index typically gains as factories restart following July maintenance, Mizuho Securities Asia Ltd. said. A separate PMI released by HSBC Holdings Plc and Markit Economics gained to 51.9 from 49.4.
Stocks in Asia advanced after the release offered reassurance that Chinaâs moderation in growth isnât deepening; any steeper slowdown in China would hurt a global recovery already hindered by elevated American unemployment. Signs of faster gains in prices in the report also underscored the need for policy makers to be on guard against inflation.
âChinaâs economic activity is decelerating, albeit gradually, on the way to realizing a soft landing,â said Shen Jianguang, an economist at Mizuho in Hong Kong. âInvestment and production are decelerating less than feared.â
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The purchasing managersâ index rose to 51.7 from 51.2, exceeding forecasts, a government-backed report showed. Seasonal factors might have had an effect because the index typically gains as factories restart following July maintenance, Mizuho Securities Asia Ltd. said. A separate PMI released by HSBC Holdings Plc and Markit Economics gained to 51.9 from 49.4.
Stocks in Asia advanced after the release offered reassurance that Chinaâs moderation in growth isnât deepening; any steeper slowdown in China would hurt a global recovery already hindered by elevated American unemployment. Signs of faster gains in prices in the report also underscored the need for policy makers to be on guard against inflation.
âChinaâs economic activity is decelerating, albeit gradually, on the way to realizing a soft landing,â said Shen Jianguang, an economist at Mizuho in Hong Kong. âInvestment and production are decelerating less than feared.â
http://noir.bloomberg.com/apps/news?pid=20601087&sid=a5y0nMeYctg8&pos=1