China’s manufacturing activity returned to growth in September, supported partly by stronger demand linked to the global artificial intelligence boom. Official data showed the manufacturing purchasing managers’ index rising to 50.1 from 49.8 in August, moving back above the 50 point level that separates expansion from contraction.
A separate private survey also showed improvement, with its manufacturing index reaching 52.1 in September, the highest level in five months. Factory output continued to outperform new demand, while weak consumption and investment remained concerns for the broader economic recovery.
The latest figures indicate some improvement in industrial activity, although continued policy support may be needed as the property sector continues to weigh on business and household confidence.