30.09.202601:38:36UTC+00China Factory Activity Returns to Growth

China’s official NBS Manufacturing PMI rose to 50.1 in September 2026 from 49.8 in August, matching market expectations. This marked the first expansion in factory activity since June, supported by sustained growth in demand.

Output growth strengthened (51.7 vs. 50.4 in August), while new orders continued to rise, albeit at a slightly slower pace (50.5 vs. 50.6). In contrast, employment remained weak, with job levels continuing to fall (48.4 vs. 48.7). Raw material inventories also kept declining (48.2 vs. 48.1), and supplier delivery times were broadly stable at 50.1.

External demand remained soft, as new export orders continued to contract (49.2 vs. 48.6), even as purchasing activity picked up more strongly (51.0 vs. 50.5). Cost pressures intensified: input prices rose at their fastest pace in five months (60.8 vs. 56.6), while output prices edged down slightly (50.0 vs. 50.4), pointing to some margin pressure for manufacturers.

Business sentiment held at a five-month low (53.8), indicating that firms remain cautious about the near-term outlook despite the return to overall expansion.