China’s manufacturing remained weak in September as activity contracted for fifth straight month, data shows
- The manufacturing purchasing managers’ index (PMI), released by the National Bureau of Statistics (NBS) on Monday, was 49.8
- Non-manufacturing PMI came in at 53.7, below analysts’ expectations of a 53.9 reading. The figure was also down from August’s 53.8
China’s manufacturing sector remained in the doldrums in September, with sentiment among factory operators remaining in negative territory for the fifth month in a row.
The official PMI is a gauge of sentiment among larger and state-owned factory operators, with 50 being the line between expansion and contraction in sector activity. In the survey, manufacturers are asked to give a view on business issues such as export orders, purchasing, production and logistics.
“Although the PMI reading is still in negative territory, the overall economy has improved,” said Zhao Qinghe, a statistician with the China Federation of Logistics and Purchasing, which produces the index with the NBS.
Zhao pointed to the “double expansion” of new orders and increased productivity for the slight improvement in September. The PMI indicated a 0.8 per cent increase in new orders, the largest expansion since May, while production also picked up by 0.4 per cent in sectors such as agricultural food processing, textiles, and electrical machinery.
Construction activities and housing construction dropped by 3.6 basis points and 4.1 basis points respectively compared to last month, but in terms of market demand, the new orders index rose to 55.1, up 1.2 percentage points compared to last month.