China’s September PMI 53.8 v. August 51.7

China’s PMI came in at 53.8,  erasing fears the economy was slowing.  A decent ISM (54.5   consensus) tomorrow will set a positive tone for Q4.  Recall our analysis of the under invested private pension funds sector (see chart below), which is a reflection of the overall market, in our opinion.  This could spark a buying panic in the next few months, especially in emerging market equities.

The WSJ reports,

BEIJING (Dow Jones)–China’s manufacturing activity expanded in September and accelerated from the previous month, an official gauge showed Friday, adding to evidence that Chinese growth remains robust.

China’s Purchasing Managers Index rose to 53.8 in September from 51.7 in August, the China Federation of Logistics and Purchasing, which issues the data with the National Bureau of Statistics, said in a statement.

A PMI reading above 50 indicates an expansion in manufacturing activity, while a reading below 50 indicates contraction.

Of the PMI’s 11 categories, nine rose and two fell compared with August, indicating broad-based strength. Only two categories, stocks of purchases and stocks of finished goods, were below the expansionary threshold of 50.

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