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China’s Manufacturing PMI Rebounds in September, Indicating Economic Growth

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China’s Manufacturing PMI Returns to Expansion Range for Fourth Consecutive Month

October 1, 2023

According to the China Federation of Logistics and Purchasing and the Service Industry Survey Center of the National Bureau of Statistics, China’s manufacturing purchasing managers’ index (PMI) for September reached 50.2%, marking a return to the expansion range. This is the fourth consecutive month of rebound in China’s PMI, indicating positive growth in the manufacturing sector.

The PMI is considered the “barometer” of macroeconomic changes and serves as an internationally accepted monitoring and early warning indicator. A value above 50% reflects economic expansion, while a value below 50% indicates economic contraction.

Among the 21 industries surveyed, 11 industries saw their purchasing managers’ index surpass the critical 50% mark in September, an increase of 2 from the previous month. This indicates an expansion in manufacturing boom.

Cai Jin, Vice President of China Federation of Logistics and Purchasing, stated that the rebound in September’s index suggests that the Chinese economy has transitioned from the recovery stage to the growth stage. He highlighted that the endogenous driving force of the economy is strengthening, and the effects of policies are becoming apparent, resulting in overall economic growth. Furthermore, the quality of economic growth has significantly improved.

In addition to the rebound in the manufacturing PMI, the non-manufacturing business activity index also witnessed an increase, rising by 0.7 percentage points from the previous month to reach 51.7%. This further confirms the improving economic recovery in China.

The non-manufacturing business activity index is used to reflect the overall operation of the non-manufacturing industry. The increase in this index suggests that the expansion of non-manufacturing industries has intensified.

Huo Lihui, Director of the Enterprise Prosperity Department of the Service Industry Survey Center, highlighted that service industry companies have positive expectations for market recovery and development. Industries such as railway transportation, postal services, telecommunications, and financial services anticipate high-prosperity business activities.

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The continuous rise in China’s manufacturing PMI and the expansion of non-manufacturing industries signify a promising outlook for the country’s economy. As the endogenous driving force and policy effects continue to strengthen, China is moving towards a period of sustained growth and improved economic quality.

Source: CCTV News Client

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