China’s official factory activity returns to expansion

China’s official manufacturing activity returned to expansion in September, ending two months of contraction, as the National Bureau of Statistics’ purchasing managers index rose to 50.1 from 49.8 in August. The reading is just above the 50-point line that separates growth from contraction and indicates a modest rebound in factory activity. The official survey also showed the nonmanufacturing PMI, which covers services and construction, climbing to 50.2 from 49.0 in August. The production subindex increased to 51.7 from 50.4, while new orders registered 50.5, slightly below August’s 50.6. New export orders eased to 50.0 from 50.1, offering little evidence in the official figures of stronger overseas demand. A separate survey by RatingDog put September manufacturing activity at 52.1, also above the expansion threshold. The difference between the private survey and the official reading leaves the measured strength of the rebound uncertain. The available reports give conflicting figures for RatingDog’s August PMI, so the month-to-month change in that survey cannot be stated consistently.