Manufacturing activity expands in China and Japan

Asia's economic recovery appears to be on track with mostly positive economic reports on Wednesday. From Reuters:

Manufacturing activity powered ahead in China and Japan in September, providing fresh evidence of a global recovery, boosted by new orders from their home markets and abroad...

HSBC's China Purchasing Managers' Index (PMI) showed factory output expanded for a sixth straight month. At 55.0, the reading was little changed from August's 16-month high of 55.1...

In Japan, the Nomura/JMMA Manufacturing Purchasing Managers Index (PMI) rose to 54.5 in September, from 53.6 in August. It remained above the 50 threshold that separates contraction from expansion for the third month in a row...

[August industrial output] rose 1.8 percent from July, the sixth straight month of gains. But it was smaller than a 2.1 percent gain in July and a 1.9 percent rise that had been forecast by economists polled by Reuters.

Highlighting the patchiness and fragility of the global recovery, export powerhouse South Korea reported industrial output fell a seasonally adjusted 1.3 percent in August from July, missing market expectations and ending a seven-month gaining streak...

Australia's August retail sales climbed 0.9 percent, nearly twice as much as had been expected, while personal borrowing, such as on credit cards, rose for the first time in 11 months.

However, despite an upwardly-revised second quarter GDP, Wednesday's US data were less upbeat. Bloomberg reports:

The Institute for Supply Management-Chicago Inc. said today its business barometer decreased to 46.1, lower than the most pessimistic forecast, from 50 in August. Readings below 50 signal a contraction. Companies cut payrolls by 254,000 jobs in September, according to ADP Employer Services...

A report from the Commerce Department showed the worst U.S. recession since the 1930s eased more than anticipated in the second quarter. The world’s largest economy shrank at a 0.7 percent annual rate from April through June, the best performance in more than a year, according to revised figures. Gross domestic product contracted at a 6.4 percent pace in the first three months of 2009.