Both industrial production and services have developed positively in the People’s Republic. However, the outlook for the Chinese economy could be clouded by the trade conflict with the United States.
CHina’s industry grew in September thanks to an upswing in export business. The official manufacturing purchasing managers’ index (PMI) rose from 51.0 in August to 51.5 in September, data from the national bureau of statistics showed on Wednesday. This puts the barometer above the 50 mark that separates monthly growth from contraction. Analysts had expected it to rise slightly to 51.2. The data signals that China’s industrial sector is continuing to move towards pre-pandemic levels as pent-up demand, stimulus-driven infrastructure expansions and surprisingly robust exports fuel a recovery.
The official PMI also showed that activity in the Chinese service sector picked up in September. The reason for this is the increasing demand throughout the economy. However, analysts expect the road to full recovery to be bumpy: A widening gap between China and the United States on trade issues, technology security and a host of other issues could further increase tension between the two countries ahead of the US presidential election in November. According to some Chinese observers, this could undermine the recovery.