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China's Final Factory PMI Shows Activity Rose Less Than Estimated

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An indicator of manufacturing activity in China increased less than previously estimated in September, final outcome of a survey by HSBC and Markit Economics revealed Monday. The latest result signaled only a modest improvement in operating conditions from August.

The headline purchasing managers' index edged up to 50.2 in September from 50.1 in August, according to the newest estimate. The reading was below the flash reading of 51.2. A PMI reading above 50, however, indicates expansion of the sector.

Production expanded for the second successive month in September, though the rate of growth slowed to a fractional pace. The pace of growth in new work was unchanged from the previous month.

At the same time, new export orders increased for the first time in six months in September, although at a marginal pace. Panelists cited stronger demand from client bases in Europe and the US.

"Growth is bottoming out on Beijing's mini-stimulus," HSBC Chief Economist Hongbin Qu said. "We expect continuous policy efforts to sustain the recovery."

Despite expansions of both output and new work, employment levels continued to decline and at a similar pace to that seen in August, Markit said. Both input and output prices increased in September, the survey found.

Most of the indicators released from China this month suggested that the world's second largest economy may have started to recover from the recent slowdown, which was largely the result of an ongoing restructuring.

The country's gross domestic product growth slowed to 7.5 percent year-on-year in the second quarter from 7.7 percent in the first three months of the year, official figures revealed in July.

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