China’s manufacturing activity in July rose the most in over two years, indicating that the economy is growing stronger on favorable government policies.
The Purchasing Managers’ Index stood at 51.7 in July, compared with 51.0 the previous month, reported the National Bureau of Statistics. Another PMI jointly compiled by Markit Economics and HSBC Holdings Plc stood at 51.7, the highest level in 18 months. A reading exceeding 50 is a sign of expansion.
“The government has been putting a lot of emphasis on the targeted easing measures, tailoring to the small-medium enterprises,” Chang Jian, a Hong Kong-based chief China economist at Barclays Plc told Bloomberg. “Growth seems to be stabilizing and the government would be able to focus more of its energy on the reform agenda in the second half of this year.”
Meanwhile, U.K. manufacturing expanded by the weakest pace in 12 months in July on fewer orders and output. An industry gauge fell from 55.4 from June’s reading of 57.2, reported Markit Economics on Friday. A measure of new orders fell from 60.6 to 57.8 while another index of output also declined.
However, the index stood above the 50 mark that separates expansion from contraction, indicating that industry output grew for the 17th straight month. Output prices grew for the 13th consecutive month, along with input costs. Factory payrolls however rose by the weakest pace in nine months despite the fact that companies added more workers for the 15th straight month, reported Markit.
Italy’s manufacturing activity in July posted its slowest growth in eight months, indicating that euro area third-largest economy is yet to pick up. The Purchasing Managers’ Index plunged to 51.9, the weakest level since November, compared with 52.6 a month earlier. Still the index stood above the 50 mark that divides expansion from contraction. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
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