China's factory activity contracts less than expected in September -- but shrinks for a fifth straight month

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CHINA ECONOMY
China's factory activity contracts less than expected in September — but shrinks for a fifth straight month

PUBLISHED SUN, SEP 29 2024 9:40 PM EDT
UPDATED 2 HOURS AGO
Lee Ying Shan
@LEEYINGSHAN
@IN/YING-SHAN-LEE

KEY POINTS
• The official manufacturing purchasing managers' index came in at 49.8 in September, compared with 49.1 in August, 49.4 in July and 49.5 in June.
• The data slightly beat the 49.5 expected among economists polled by Reuters.
• Headwinds for the manufacturing sector has continued to mount as a prolonged economic slowdown and property crisis dampen domestic demand.


A worker assembling a loader transmission mechanism at a manufacturer in Qingzhou, China.
Nurphoto | Nurphoto | Getty Images

China's factory activity contracted for a fifth consecutive month in September as the world's second-largest economy struggles to revive its growth momentum.

The official manufacturing purchasing managers' index came in at 49.8 in September, compared with 49.1 in August, 49.4 in July and 49.5 in June, according to data from the National Bureau of Statistics released on Monday. … A PMI reading above 50 indicates expansion in activity, while a reading below that level points to contraction. The data beat the 49.5 expected among economists polled by Reuters.

Zhao Qinghe, senior statistician at NBS, said that the overall economic sentiment has improved with PMI rising to 49.8%, and that manufacturing activities have picked up speed, with high-tech manufacturing and equipment manufacturing continuing to lead.

However, China's Caixin PMI was 49.3, compared to 50.4 in August, according to the private survey compiled by S&P Global. The Caixin data released on Monday indicated that China's manufacturing sector experienced its sharpest contraction in 14 months in September, driven by declining demand and a weakening labor market.

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