BEIJING: China’s manufacturing purchasing managers’ index (PMI) rose to 50.1 in September from 49.8 in August, official data showed on Wednesday. Factories returned to expansion after two months of contraction.
The National Bureau of Statistics (NBS) recorded a production index of 51.7 and a new-orders index of 50.5. Readings above 50 indicate expansion; those below signal contraction.
Meanwhile, RatingDog’s private manufacturing PMI climbed to a five-month high of 52.1 from 51.5 in August. Services and construction also improved. The official non-manufacturing index rose to 50.2 from 49.0 a month earlier.
However, economists warned that weak consumption, investment and the prolonged property downturn continued to constrain the recovery.
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Hao Zhou, a Hong Kong-based economist at Guotai Haitong Securities, said fiscal support appeared to be gaining traction. He described the economy as “shifting back into a higher gear”.
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But Zhou argued that property relief needed to reduce households’ debt burdens before it could help strengthen consumption.
On Tuesday, China announced measures to direct cheaper credit to infrastructure and technology, alongside expanded support for homebuyers.
Beijing still relies heavily on exports and industrial production to support growth. Its leaders have pledged faster fiscal spending and further policies to address the slowdown.
