Manufacturing shows modest gains in September

China’s manufacturing sector continued a slow but steady recovery in September, with the official purchasing managers’ index (PMI) rising to 49.8, up 0.4 points from August, according to data released last week by the National Bureau of Statistics.

While still below the 50-point threshold that separates expansion from contraction, the report points to improving production conditions.

Large enterprises fared better, with their PMI reaching 51.0, indicating expansion, while medium-sized firms held steady at 48.8. Small enterprises saw a notable rebound, climbing to 48.2, reflecting improved business conditions.

Huo Lihui, chief statistician at the bureau’s Service Survey Center, highlighted a six-month high in the production index at 51.9, suggesting accelerated output.

According to the official, manufacturing enterprises are ramping up production and raw material purchases, driven by stronger market demand, noting that the purchasing volume index rose from 50.4 to 51.6, as cited in a China Daily report.

Key sectors such as equipment, high-tech, and consumer goods manufacturing expanded faster than the broader industry, with PMIs of 51.9, 51.6, and 50.6, respectively. Optimism among businesses remains elevated: the business activity expectations index hit 54.1, marking three consecutive months of growth, with strong confidence reported in food processing, automobiles, railway, shipbuilding, and aerospace equipment.

Meanwhile, China’s non-manufacturing sector was stable at 50.0, and the composite PMI edged up to 50.6, suggesting a modest acceleration in overall economic output. LV