China’s manufacturing expanded at the fastest pace in four months in September, adding to signs that economic growth is stabilising even as the government curbs energy use and tries to cool the property market.
The purchasing managers’ index rose to 53.8 from 51.7 in August, China’s logistics federation and statistics bureau said today. Economists had predicted a rise to 52.5. Readings above 50 indicate expansions.
Today’s data add to a manufacturing survey released September 29 that also showed an acceleration, suggesting China’s economic momentum may counter weakness in the global recovery.
The nation’s growth may be aided in coming months by government plans to speed the completion of stimulus projects and boost public housing construction.
Government spending on infrastructure and welfare housing will ‘‘spur growth in related industries such as steel, machinery and cement,’’ said ANZ economist Liu Li-Gang. ‘‘The impact of energy curbs on industries seems to be receding.’’
The manufacturing index released last week by HSBC Holdings and Markit Economics rose to the highest in five months.
In today’s data, an output index rose to 56.4 from 53.1 in August. A measure of new orders gained to 56.3 from 53.1 and an export-order index climbed to 52.8 from 52.2. An input price index rose to 65.3 from 60.5, the biggest jump among all sub-indexes.
The government this week stepped up measures against property speculation by tightening down-payment rules for first homes, suspending third-home loans and pledging to quicken a trial of a property tax. Officials are also shuttering factories to meet energy-reduction targets.
In contrast to measures cooling growth, China’s top economic planner, the National Development and Reform Commission, last month urged the speedy completion of projects under a two-year stimulus plan that ends this year.
Economic growth moderated to 10.3 per cent in the second quarter from 11.9 percent in the previous three months.
The pace may slow to 8.7 per cent in the fourth quarter, according to analyst estimates.
China’s benchmark Shanghai Composite index gained 11 per cent last quarter after tumbling 27 per cent in the first half of the year on concern that Premier Wen Jiabao’s effort to counter asset bubbles would hurt the economy. Chinese markets are closed for a holiday today.
Gains in domestic consumption, including auto sales, are supporting manufacturing, with carmakers including PSA Peugeot Citroen, Toyota Motor and Nissan Motor boosting capacity or planning new models. Rebounding property sales since August have aided developers including Soho China, which said September 27 it reached a full-year sales target ahead of schedule.
The PMI, released by the logistics federation and the Beijing-based National Bureau of Statistics, covers more than 820 companies in 20 industries, including energy, metallurgy, textiles, automobiles and electronics.