China’s economic recovery underlined as manufacturing, services outlook remains positive

China’s official manufacturing purchasing managers’ index (PMI) was 51.5 for September, while the non-manufacturing PMI was 55.9

Within the manufacturing PMI, new export orders rose to 50.8 in September from 49.1, above the watershed mark of 50.0 for the first time since December of 2019

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China’s official manufacturing purchasing managers’ index (PMI) was 51.5 for September, while the non-manufacturing PMI was 55.9. Photo: Bloomberg

Published: 9:05am, 30 Sep 2020Updated: 1:50pm, 30 Sep 2020

Both China’s manufacturing and services industries continued to show recovery in September, data released on Wednesday showed.

China’s official manufacturing purchasing managers’ index (PMI) stood at 51.5 in September, with a reading above 50.0 signifying growth in factory output. This was an above the reading of 51.0 for August, and also above the median expectations in a Bloomberg survey for a rise to 51.3.

Caixin/Markit manufacturing PMI, which focus in more small, private firms unlike the official index which focuses on more larger, state-owned firms, fell slightly to 53.0 in September from 53.1 in August and below the Bloomberg survey expectation for an unchanged reading.

The official non-manufacturing PMI, which measures sentiment in the services and construction sectors, stood at 55.9 in September. This was an above the reading of 55.2 for August, and also above the median expectations in a Bloomberg survey for a decline to 54.7.

The official manufacturing and non-manufacturing indices have showed positive economic activity for seven consecutive months.

The official composite PMI was 55.1 in September compared to 54.5 in August.

Within the official manufacturing PMI, the subindex for new export orders rose to 50.8 in September from 49.1 in the previous month, above the watershed mark of 50.0 for the first time since December.

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