China's September PMIs Rebound into Expansion, Signaling Potential GDP Recovery

MT Newswires Live
09/30

China's manufacturing and non-manufacturing activity returned to expansionary territory for the first time since June, indicating a potential recovery in third-quarter gross domestic product momentum.

The official manufacturing purchasing managers' index (PMI) recovered to 50.1 in September from 49.8 in August, according to data from the National Bureau of Statistics released Wednesday. The print matched the market consensus forecast tracked by Investing.com.

Sub-indices for equipment manufacturing, high-tech manufacturing, and consumer goods all expanded during the month, indicating "relatively active production" across those industries, NBS statistician Huo Lihui said in a statement.

Non-manufacturing activity also returned to expansion, with the PMI rising to 50.2 in September from 49.0 in the previous month. This beat the market consensus forecast of 49.3.

China's composite PMI grew to 50.7 from 49.5 in the previous month, beating a forecast of 50.1.

Private surveys echoed the official data's optimism. The RatingDog China General Manufacturing PMI, compiled by S&P Global, rose to 52.1 in September from 51.5 in August due to stronger client demand and work inflows. RatingDog's services PMI increased to 51.6 from 51.4 in the previous month.

The recovery in the PMIs could indicate third-quarter GDP could recover from the 4.3% growth seen in the second quarter, ING Chief Economist for Greater China Lynn Song said.

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