China’s manufacturing Purchasing Managers’ Index (PMI) stood at 50.4 in September, unchanged from August, while the non-manufacturing PMI increased to 53.7 from the previous month’s 53.5, official data showed on Oct 1.
The manufacturing PMI has stayed above the 50-point mark that separates expansion from contraction for the second month in a row, while the non-manufacturing PMI has stood above the line for seven consecutive months, according to the National Bureau of Statistics (NBS).
NBS statistician Zhao Qinghe said both production and demand showed signs of stabilization in the manufacturing sector, while the non-manufacturing sector is gradually picking up steam as enterprise confidence builds strength.
The manufacturing sub-index for production moved up to 52.8 from 52.6 in August, rising for the second consecutive month. The index for new orders was slightly down from the previous month, but remained in expansionary territory.
The non-manufacturing sub-index for new orders rose to 51.4 in September, its highest level in 2016, indicating demand in the sector is picking up.
The data came on the heels of the Caixin manufacturing PMI, a private gauge of manufacturing activity, which showed the index was in expansionary territory for the second time since February 2015.
The Caixin manufacturing PMI edged up to 50.1 in September from 50 the previous month, according to a survey conducted by financial information service provider Markit, sponsored by Caixin Media.
The official PMI samples 3,000 large enterprises in China. The Caixin PMI samples 420 small and medium-sized manufacturing enterprises and is relatively volatile due to its small sample size and the dominance of smaller enterprises.