The official manufacturing Purchasing Managers' Index rose to 50.1 in September from 49.8 in August, moving above the 50-point threshold that separates expansion from contraction. The reading ended two consecutive months of contraction and matched the median forecast in a Reuters poll.
A private manufacturing survey by RatingDog also showed improvement, with its PMI rising to 52.1 from 51.5 in August, its highest level in five months. Production and new orders strengthened, suggesting that improved operating conditions and stronger industrial demand helped factories regain momentum.
The recovery, however, remains uneven. Weak consumption and investment continue to weigh on the domestic economy, while the prolonged property downturn has constrained household and business confidence.
Beijing has introduced measures designed to direct cheaper credit towards sectors including infrastructure and technology and to expand support for home buyers. The measures come as policymakers seek to address the drag from property markets while maintaining investment in strategic areas such as artificial intelligence and technological self-reliance.
The manufacturing improvement also reflects China's continuing dependence on industrial production and exports. The country's goods trade surplus is on course to exceed $1 trillion for a second consecutive year, underscoring the role of external demand in supporting activity while domestic consumption remains weaker.
China's economy expanded 4.3% in the second quarter, its slowest pace in more than three years. Policymakers are targeting full-year growth of between 4.5% and 5%, increasing pressure to sustain fiscal and credit support through the remainder of the year.
Trade relations remain another variable. China and the United States have agreed to pursue tariff reductions covering $60 billion of goods traded between the two economies, although significant products remain outside the arrangement.
For businesses and investors, the policy direction points to continued emphasis on infrastructure, technology and industrial capacity alongside efforts to stabilise property and household demand.
The key test will be whether stronger industrial activity can broaden into consumption and private investment, allowing the economy to rely less heavily on exports and government-supported sectors.
Republished from the existing Aldrenor collection. Aldrenor editorial archive.
