As macroeconomic policies took effect, the Manufacturing Purchasing Managers’ Index (PMI) reentered the expansion zone in September, while service sector sentiment rebounded, ending a five-month decline.
On September 30th, the National Bureau of Statistics revealed that the Manufacturing PMI for September was 50.2, an increase of 0.5 percentage points from August, marking its first entry into the expansion range since April. Meanwhile, the non-manufacturing business activity index climbed to 51.7, an increase of 0.7 percentage points from the previous month, halting its decline since April. Notably, two key industries experienced a PMI resurgence, pushing the composite PMI up by 0.7 percentage points to 52.0, signifying a quicker expansion in business and production activities.
In September, the manufacturing PMI sub-indexes indicated sustained improvements in production and demand. The manufacturing production index reached 52.7, and the new orders index was at 50.5—increases of 0.8 and 0.3 percentage points from August, respectively, marking their highest levels since April. Sector-wise, industries like oil, coal, fuel processing, automobiles, and electrical machinery reported production and new orders indexes exceeding 53.0, signifying a rapid release of production and demand in these sectors.
While external demand showed improvement, it remains in contraction. In September, the new export orders index rose by 1.1 percentage points to 47.8—its highest since April. However, it has remained below the threshold for the past six months.
To fulfill production requirements, enterprises increased their purchases. Consequently, the purchasing volume index in September edged up by 0.1 percentage points to 50.7, marking its second month of expansion.
As some bulk commodity prices persist in rising and market demand rebounds, there’s continued upward pressure on manufacturing prices. In September, the main raw material purchase price index stood at 59.4, while the factory price index was at 53.5. These represent increases of 2.9 and 1.5 percentage points from August, respectively, reaching their highest levels since May 2022.
Regarding business size, both large and small enterprises saw improved operating conditions, although disparities persist. In September, the PMI for large enterprises rose by 0.8 percentage points to 51.6, its highest point in six months. Meanwhile, the PMI for medium-sized enterprises held steady at 49.6, and that of small enterprises reached 48.0, a 0.3 percentage point increase from the previous month.
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