China factory activity returns to growth in September

BEIJING

China’s factory activity returned to growth in September after two months of contraction, official data showed on Sept. 30, offering a modest sign of improvement as Beijing steps up support for the world’s second-largest economy.

The official manufacturing purchasing managers’ index (PMI) rose to 50.1 from 49.8 in August, according to the National Bureau of Statistics (NBS).

A reading above 50 indicates expansion, while one below that level signals contraction. The index stood at 49.2 in July.

Factory production strengthened, with the production sub-index rising to 51.7 from 50.4 in August. New orders remained in expansion territory at 50.5.

The non-manufacturing PMI, covering services and construction, climbed to 50.2 from 49.0 a month earlier. Construction activity returned to expansion at 50.3, while the services index rose to 50.2.

The composite PMI, which covers both manufacturing and non-manufacturing activity, increased to 50.7 from 49.5.

The figures came as Beijing unveiled additional measures to support an economy still facing weak domestic demand and a prolonged property downturn.

The State Council said earlier this week that it would roll out measures aimed at stabilizing the property market, supporting employment and raising incomes.

The People’s Bank of China followed on Sept. 29 by cutting a key policy lending rate and expanding credit support for infrastructure, technology and smaller businesses.

Authorities also announced an interest subsidy for qualifying first-home mortgages, due to take effect on Oct. 1.

Exports and advanced manufacturing have remained important sources of support for the Chinese economy, with demand linked to the global artificial intelligence boom helping parts of the technology sector.