In September, China’s factory activity shrank for the fifth consecutive month, indicating challenges amid efforts to revitalize the country’s growth momentum.
According to official information from the National Bureau of Statistics published on Monday, the official manufacturing purchasing managers’ index stood at 49.8 in September, showing a slight improvement from 49.1 in August, 49.4 in July, and 49.5 in June.
The figure surpassed the 49.5 forecasted by economists surveyed by Reuters, though a reading below 50 indicates contraction.
According to Zhao Qinghe, a senior statistician at NBS, there has been an enhancement in the overall economic sentiment as indicated by the rise in PMI to 49.8. He noted that manufacturing activities have shown an acceleration, particularly with high-tech manufacturing and equipment manufacturing sectors leading the way.
On the other hand, the country’s manufacturing sector witnessed the strongest slump in 14 months in September, with Caixin PMI standing at 49.3, down from 50.4 seen in August, due to sluggish demand and a deteriorating workforce.
Challenges persist for the manufacturing sector as an extended economic deceleration and a property market crisis weigh on domestic demand. Additionally, apprehensions have heightened due to limitations imposed by Western countries on Chinese exports, including electric vehicles.
In August, China’s industrial profit plummeted by 17.8%, compared to the same period last year, making it the largest drop in over a year, while retail sales, industrial production, and urban investment all grew at a stiffer pace than expected, with retail sales surging by 2.1% and industrial output improving by 4.5% from a year prior.
