China’s Manufacturing Activity Rises After Six Months

China’s manufacturing activity expanded for the first time in six months, and services saw an uptick in October, indicating that Beijing’s latest stimulus measures may be helping the struggling economy, Joe Cash reported for Reuters.

Policymakers are banking on a recent stimulus effort launched in late September to boost economic growth towards the annual target of roughly 5% and encourage lending and investment.

The National Bureau of Statistics’ purchasing managers’ index (PMI) rose to 50.1 in October from 49.8 in September, crossing the 50-point mark that separates growth from contraction and beating a median forecast of 49.9 in a Reuters poll.

The non-manufacturing PMI, covering sectors like construction and services, also increased to 50.2, up from 50.0 in September.

Policymakers are banking on a recent stimulus effort launched in late September to boost economic growth towards the annual target of roughly 5% and encourage lending and investment as the property market downturn and low consumer confidence deter investors.

“This indicates the early impact of increased fiscal support, especially through accelerated government bond issuance,” said Xu Tianchen, senior economist at the Economist Intelligence Unit.