Rebound pace shows signs of picking up

Manufacturing activity expands for first time in six months, bolstering confidence

China's economic momentum firmed up last month as manufacturing activity resumed expansion for the first time in half a year, adding to signs that the economy has bottomed out and may recover steadily in the fourth quarter, experts said.

Nevertheless, continuous policy support is still crucial, given the sustained difficulty of small businesses, they said, with monetary policy to remain accommodative and additional government spending likely in the rest of the year.

The comments came after the National Bureau of Statistics said on Saturday that the official purchasing managers index for the manufacturing sector came in at 50.2 in September, standing above the boom-bust line of 50 for the first time in six months and rising for the fourth consecutive month.