'China's factory activity expands on exports boost'
China's factory activity expanded in January thanks to stable growth in output, quicker logistics and the first rise in new export orders since June, helping lift business confidence to a nine-month high, a private-sector survey showed on Thursday. The positive outturn, however, contrasted with an official survey on the previous day showing manufacturing activity contracted again last month due to persistently weak demand. The Caixin/S&P Global manufacturing PMI stayed at 50.8 in January, unchanged from December and surpassing analysts' forecasts of 50.6. The 50-point mark separates growth from contraction. "Quicker logistics, increased procurement, and rising inventories reflected improved business confidence," said Wang Zhe, senior economist at Caixin Insight Group. However, he noted that employment remained in contraction, price levels were subdued and "deflationary pressures persisted". Policymakers in China face the task of revitalising the economy in the face of a property downturn, along with other issues. The crisis-hit property sector was dealt a fresh blow this week after the High Court ordered the liquidation of the debt-laden developer China Evergrande Group. But the Caixin survey offered some hope that external demand may be starting to improve with new export orders increasing for the first time since June last year, though marginally. (Reuters)