Business

China factories likely to report 
growth in output for September

BEIJING China's factories likely cranked up activity for the 14th straight month this month, though the pace of growth may have eased from last month.

The Purchasing Managers' Index on Sunday is expected to come in at 51.5 this month, dipping from August's 51.7, according to a median forecast of 24 economists polled by Reuters. A reading above 50 means growth in the manufacturing sector. A reading under 50 represents contraction.

China's manufacturers are reporting robust earnings, fuelled by a government-led infrastructure spending spree and a recovery in exports.

Profit growth at Chinese industrial companies accelerated last month at the fastest monthly pace in four years due to higher commodity prices, data showed on Wednesday.

But there are signs that the momentum is starting to fade.

August data from industrial output to investment and retail sales was softer than expected, which analysts attributed to a rise in borrowing costs this year as the government tries to reduce risks from a rapid build-up in debt. - REUTERS

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