China's factory activity expands in September

The news: China's factory activity expanded at a slower pace in September, with external demand continuing to be sluggish, a private-sector survey showed on Sunday.

The numbers: The Caixin/S&P Global manufacturing purchasing managers' index (PMI) fell to 50.6 in September from 51.0 in the previous month, missing analysts' forecasts of 51.2. The 50 index point mark separates growth from contraction.

The context: According to the Caixin PMI, factory output and new orders remained in expansionary territory in September, however, the export orders index contracted for the third month. The survey comes a day after official China PMI data showed factory activity expanded for the first time in six months in September, adding to the run of indicators suggesting the economy has begun to bottom out. The world's second-largest economy is showing some signs of stabilising after several modest policy measures, but the outlook is clouded by a property slump, falling exports and high youth unemployment.