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China factory activity expands at quickest pace since 2011 as demand surges

Numbers beat analysts' forecasts for a more modest improvement of 51.3

Photo: Bloomberg
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China announced unprecedented emergency measures early in the year to mitigate the economic damage from the health crisis, which had caused weeks of disruptions as most regions imposed strict lockdowns. | Photo: Bloomberg

Reuters Beijing

China's factory activity expanded at the fastest pace in nearly a decade in July as domestic demand continued to improve after the coronavirus crisis, though export orders and employment remained weak, a private business survey showed on Monday.

The Caixin/Markit Manufacturing Purchasing Managers' Index(PMI) rose to 52.8 last month from June's 51.2, marking the sector's third consecutive month of growth and the biggest jump since January 2011.

It also beat analysts' forecasts for a more modest improvement of 51.3. The 50-mark separates growth from contraction on a monthly basis.

The generally upbeat findings echoed an official survey on Friday, adding to evidence that