A special survey showed today, Monday, that Chinese factory activities grew at their fastest pace in nearly 10 years in July, amid continued improvement in domestic demand in the wake of the Corona virus crisis, but with continued weakness in export and employment orders.

The Caixin / Markit index of manufacturing purchasing managers rose to 52.8 points last month, compared to 51.2 points last June, to grow the sector for the third month in a row and achieve the biggest jump since January 2011. The 50-point level separates growth and contraction.

The overall results are hopeful with the reading of an official survey released on Friday, which provides new evidence that the second largest economy in the world is back on its feet faster than expected, after the shock of the Corona virus, which has become largely under control.

"Supply and demand have both improved, with relevant indicators maintaining a strong momentum," wrote Wang Qi, chief economist of Caixin Insight Group, in a note accompanying the survey results. From employment and external demand. "

China announced unprecedented extraordinary measures early in the year, to ease the economic damage to the health crisis that has caused unrest for weeks, amid stringent comprehensive closings in most parts.

Growth picked up in the second quarter of the year after a record contraction in the first quarter, but analysts are looking for signs that the recovery is not just a product of temporary factors, such as exclusive demand and government stimulus.

 Germany

In Germany, a survey showed today that last July German manufacturers witnessed an expansion of activity for the first time since December 2018, which indicates the continued recovery of the sector.

The IHS Markit index of manufacturing managers for the manufacturing sector, which contributes about a fifth of the economy, rose to 51.0 points last month, exceeding the 50-point level between growth and deflation, for the first time in 19 months.

Phil Smith, an economist at IHS Market, linked the increase to a strong improvement in both output and new orders, but added that the survey indicated continued demand below pre-crisis levels, which prevents a stronger recovery.

Britain

In Britain, a survey showed - on Monday - the growth of British industrial sector production at its fastest rate in nearly 3 years in July, with factories reopening and demand improvement beginning to ease anti-Corona virus closures.

The IHS Markit / CIPS index of manufacturing purchasing managers rose to 53.3 points last month, compared to June's reading of 50.1 points, its highest level since March 2019.

The output index - which IHS Market says is currently giving a clearer picture of the sector's safety - has risen to its highest level since November 2017, at 59.3 points.

Supply orders grew for the first time in 5 months, and the level of optimism increased by the most in two years, but the indicator represents the pace of growth, not volume, and the sector still has a long way to go before it returns to what it was before the closures.

Official data show that British factory production collapsed 28% over the past March and April, before rising by 8% last May.