China’s Manufacturing Sector Rise

According to Manufacturing.net, a recent survey showed that China’s manufacturing sector expanded in September for a sixth month and employment rose at its fastest rate in two years, indicating that the recovery in the world’s third-largest economy is on track.

The country’s purchasing managers’ index was largely unchanged at 55.0, compared with August’s 55.1, on a 100-point scale where numbers above 50 show activity expanding. Employment grew at its fastest rate in 25 months, which suggested China’s recovery, fueled by heavy government spending on public works construction, is spreading to the consumer sector.

China’s economic growth rose to 7.9% over a year earlier in the quarter ending June 30, up from 6.1% the previous quarter, driven by Beijing’s 4 trillion yuan ($586 billion) stimulus. But the biggest gains have been for state-owned construction companies and suppliers of building materials, while the private sector has lagged.