China Factory PMI Returns to Growth at 50.1 as Beijing Unveils Targeted Stimulus
Updated
Updated · CNBC · Sep 30
China Factory PMI Returns to Growth at 50.1 as Beijing Unveils Targeted Stimulus
3 articles · Updated · CNBC · Sep 30
Summary
China’s official manufacturing PMI rose to 50.1 in September from 49.8 in August, returning to expansion as equipment, high-tech and consumer-goods production improved.
The rebound came as Beijing rolled out targeted fiscal and monetary support, including mortgage subsidies, a larger central-bank lending quota for infrastructure and small firms, and a lower rate on that program.
Non-manufacturing PMI also moved back into expansion at 50.2, with services activity picking up and construction reaching its strongest level this year.
Economists said the package may be enough to help China hit its 4.5%-5% annual growth goal, but Nomura and Goldman Sachs warned the measures are modest and skewed toward supply rather than demand.
The policy push follows months of weakening indicators and a 4.3% second-quarter growth low, with exports still supporting the economy even as weak domestic demand and higher energy costs squeeze margins.