China: Manufacturing PMI rises in September; non-manufacturing PMIs dips
Latest reading: China’s official NBS Manufacturing PMI edged up to 49.8 in September from 49.4 in August, above market expectations and signaling a slower contraction in factory activity. Output and buying activity strengthened, while declines in new orders, exports, and employment moderated.
The Non-Manufacturing PMI slipped to 50.0 from 50.3, its weakest reading since late 2024 and below market expectations, reflecting softer momentum in services and construction.
Panelist insight: Delving into the data, Nomura analysts said:
“We believe the higher manufacturing PMI and the lower non-manufacturing PMI in September were partially driven by the later-than-usual mid-autumn festival, which increased the number of working days in September. Despite the improvement, the manufacturing PMI has remained below 50 for six months since the tariff blitz in April and points to sustained weakness in factory activity. The price indices also fell back in September, suggesting a moderation in the anti-involution campaign, which partly contributed to the surge in industrial profits in August.”