China's manufacturing activity picked up speed in September, an initial survey by HSBC has shown, adding to signs of a rebound in its economy.
The bank's Purchasing Managers' Index (PMI), a gauge of the sector's health, rose to 51.2 from 50.1 in August.
A reading above 50 shows an expansion. This is the second month in a row the HSBC reading has been above that level.
China has been trying to boost its economy after the recent slowdown in its growth rate.
It has taken various steps, including suspending value-added tax for small businesses, to try and boost domestic consumption.
Hongbin Qu, chief China economist at HSBC, said the measures had helped trigger a pick-up in demand and were likely to help boost manufacturing activity further in coming months.
"We expect a more sustained recovery as the further filtering-through of fine-tuning measures should lift domestic demand," he said.
Data released over the past few weeks showed that factory output, exports, retail sales and fixed asset investment all rose in August.
Source: BBC News - Business http://www.bbc.co.uk/news/business-24200711#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa