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China’s Economy Recovering

An expansion of China’s manufacturing sector has added to indicators that a sustainable recovery is on the horizon for the world’s number 3 economy. According to the China Federation of Logistics & Purchasing, China’s Purchasing Managers’ Index (PMI) rose to a 6-month high of 54.0 in August, from July’s 53.3.

The improvement in the sector was helped by increases in output, new orders and imports. The positive data helped lift the Shanghai Composite Index, which closed up 0.6% yesterday, following a sharp sell-off on Monday.

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