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China PMIs return to expansion in September as prices rise
China’s official September PMI Composite climbed to 50.7, while the production index increased to 51.7 and both input and output prices accelerated.
Action Forex reports that China’s official September PMIs improved broadly, with both manufacturing and non-manufacturing activity returning to expansion. PMI Manufacturing rose to 50.1 from 49.8, ending two months below the 50 threshold, while PMI Non-Manufacturing increased to 50.2 from 49.0 and beat the 49.3 consensus. The PMI Composite strengthened to 50.7 from 49.5, indicating a broader pickup across the economy at the end of the third quarter.
The outlet said the gain was supported by a stronger seasonal production period that eased weather disruptions and improved activity in both factories and services. However, manufacturing details showed production still running ahead of demand, with the production index rising from 50.4 to 51.7, while new orders edged down from 50.6 to 50.5 and new export orders slipped from 50.1 to 50.0.
Action Forex also highlighted weaker employment and falling backlogs, with backlogs decreasing from 46.7 to 46.0 and employment weakening from 48.7 to 48.4. Price pressures intensified as input prices jumped from 56.6 to 60.8 and output prices rose from 50.4 to 54.0, signaling a stronger cost impulse.
The data, as summarized by Action Forex, pointed to output strength without a matching improvement in underlying demand, alongside rising price momentum.