Chinese factory activity expands in September amid AI boom
FXI•China’s official manufacturing PMI rose to 50.1 in September from 49.8 in August, while a private survey reached a five-month high of 52.1. The readings showed expansion as weak consumption and investment continued to weigh on the recovery.
1. Factory activity expands
China’s official manufacturing PMI rose to 50.1 in September from 49.8 in August, ending two months of contraction. The new orders sub-index was 50.5 and production was 51.7. A private survey put manufacturing PMI at 52.1, up from 51.5 in August and its highest level in five months.
2. Recovery remains uneven
Factories resumed operations as weather disruptions eased, while global demand for AI supported industry. Weak consumption and investment continued to weigh on the outlook, and the property downturn affected business and household confidence. The non-manufacturing PMI, covering services and construction, rose to 50.2 from 49.0.
3. Policy support and trade
China announced measures to steer cheaper credit toward sectors including infrastructure and technology and to expand support for home buyers. Beijing is targeting full-year growth of 4.5% to 5%, after the economy grew 4.3% in the second quarter. China and the United States said they would pursue tariff cuts on $60 billion worth of goods imported from each other.
