China's manufacturing expanded at a faster pace in September, supporting an economic recovery spurred by massive stimulus spending, a survey showed Thursday.
The state-sanctioned China Federation of Logistics and Purchasing said its purchasing managers index rose to 54.3 from August's 54 on a 100-point scale where numbers above 50 show activity expanding. It marked the seventh straight month of expansion.
Economic growth accelerated to 7.9 percent over a year earlier in the second quarter, up from 6.1 percent the previous quarter, driven by Beijing's 4 trillion yuan ($586 billion) stimulus. The plan is helping to boost industrial demand through heavy spending on building new highways and other public works.
Economists see the PMI as a better measure of China's economic outlook than gross domestic product because it includes forward-looking elements such as new orders.
The Chinese federation's survey is based on responses from managers who oversee purchasing for some 700 Chinese companies.
The government has warned that some industries suffer from overcapacity, suggesting the risk of an unsustainable boom that might lead to a bust.
On Wednesday, Beijing announced sweeping curbs on surging investment in steelmaking, cement, aluminum, wind turbine manufacturing and other industries.
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On the Net:
China Federation of Logistics and Purchasing (in Chinese): http://www.chinawuliu.com.cn
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