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The Canadian Press - ONLINE EDITION

China factory activity at 18-month high as mini-stimulus for No. 2 economy takes effect

HONG KONG - A survey shows China's factory activity rose in July to its highest level in 18 months, a sign that mini-stimulus measures to shore up the world's No. 2 economy have taken hold.

The preliminary HSBC purchasing managers' index released Thursday rose to 52.0 in July from 50.7 in June.

The index uses a 100-point scale on which numbers below 50 indicate contraction.

The report said overall new orders and new export orders in China's giant manufacturing industry rose faster in July than the month before.

China's economic growth edged up to 7.5 per cent in the April-June quarter after slowing in the previous period.

HSBC said the impact of finely tuned stimulus measures rolled out by policymakers in recent months is "still filtering through."

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