China September PMI Returns to Expansion Territory Across Manufacturing and Services
SingTao · 2 SOURCESabout 2 hours ago2 MIN
Summary
China's official September 2026 PMI data showed a broad-based recovery, with both manufacturing and non-manufacturing indices returning to expansion territory. The manufacturing PMI of 50.1 matched market expectations and represented the highest reading since June, signaling improved momentum in the industrial sector. The non-manufacturing index at 50.2 exceeded forecasts and rebounded strongly from the previous month. The National Bureau of Statistics highlighted that three key industries—equipment manufacturing, high-tech manufacturing, and consumer goods—expanded at a brisk pace.
Key Points
- Manufacturing PMI reached 50.1 in September, up 0.3 percentage points from August, returning to expansion territory for the first time since June
- Non-manufacturing business activity index came in at 50.2, beating market expectations of 49.2 and rising 1.2 percentage points month-on-month
- Composite PMI output index registered 50.7, up 1.2 percentage points, marking the highest level since June
- Equipment manufacturing, high-tech manufacturing, and consumer goods sectors posted PMIs of 51, 52.7, and above the critical 50 mark respectively, with robust expansion
- Construction sector business activity index jumped 3.4 percentage points to 50.3, while services rose 0.9 points to 50.2
- Large enterprises held steady at 50.6, while small and medium enterprises improved to 49.7 and 48.9 respectively
- Production index climbed to 51.7, up 1.3 percentage points, indicating accelerated manufacturing activity
- Telecommunications, financial services, and insurance sectors led the non-manufacturing recovery with indices above 55
Why It Matters
The simultaneous return of both manufacturing and non-manufacturing indices to expansion territory suggests a more balanced economic recovery in China. Huo Lihui, chief statistician at the National Bureau of Statistics service industry survey center, noted that the three key industries expanded rapidly, indicating broad-based momentum . For Hong Kong, as a key financial and trade hub closely tied to mainland economic cycles, improved mainland demand could bolster regional trade flows and financial services activity in the coming months.
The simultaneous return of both manufacturing and non-manufacturing indices to expansion territory suggests a more balanced economic recovery in China. Huo Lihui, chief statistician at the National Bureau of Statistics service industry survey center, noted that the three key industries expanded rapidly, indicating broad-based momentum . For Hong Kong, as a key financial and trade hub closely tied to mainland economic cycles, improved mainland demand could bolster regional trade flows and financial services activity in the coming months.