China factory index ticks up, easing growth fears
HONG KONG (AP) — A report says growth in China's manufacturing unexpectedly ticked higher in September, easing concerns about the No. 2 economy's recovery.
HSBC's purchasing manager index released Tuesday edged up to 50.5 this month from 50.2 in August.
The index uses a 100-point scale on which number below 50 indicate contraction.
Analysts had expected the reading to fall for a second month, dragged down by the slumping property market.
China's economic growth edged up in the April-June quarter to 7.5 percent after policymakers rolled out a batch of relief measures. But analysts say further increments in growth will be hard to achieve without more government spending.
HSBC's China economist said the "picture is mixed," with new orders improving but employment falling.
The report's final version is due at the end of September.