China's factory activity contracted for sixth consecutive month in September
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The news: China’s manufacturing activity contracted in September, the sixth consecutive contraction, according to new purchasing managers’ index (PMI) data released by the National Bureau of Statistics of China.
The numbers: Manufacturing PMI lifted from 49.4 in August to 49.8 in September, but remained below the 50 point threshold that distinguishes between a period of contraction from expansion.
Non-manufacturing PMI, which captures construction and services, fell from 50.3 in August to 50 in September.
The context: The National Bureau’s service industry survey centre chief statistician Huo Lihui flagged that the manufacturing PMI increased month on month amid improved market demand and that market expectations were improving.
Equipment manufacturing, high-tech manufacturing and consumer goods showed expansion but high energy-consuming industries contracted.
He also noted that the rate of service sector activity expansion diminished “as the summer holiday effect faded, consumer-related industries such as catering, culture, sports and entertainment fell below the threshold”.
There are expectations that China’s economic growth will slow in the final months of 2025, after posting a 5.3% year-on-year growth rate in the first half of the year, as efforts to frontload exports ahead of US tariffs slow down.
The sources: The National Bureau of Statistics of China, Bloomberg, Reuters
