China's factory activities return to expansion in September

China's factory activity returned to expansion territory in September, rising above the 50-point mark after two consecutive months of contraction, official data showed on Wednesday.

Data from the National Bureau of Statistics showed that China's official purchasing managers' index (PMI) for the manufacturing sector rose to 50.1 in September from 49.8 in August, up 0.3 percentage points and marking a second consecutive monthly increase.

The rebound, according to Huo Lihui, chief statistician at the bureau's service survey center, reflected continued expansion in production and demand, as well as brisk activity in equipment manufacturing, high-tech manufacturing and consumer goods.

The production sub-index rose 1.3 percentage points to 51.7 in September, while the new orders gauge edged down 0.1 percentage point to 50.5. Both remained above the 50-point threshold, indicating continued expansion in production and market demand, the NBS reported.

New growth drivers continued to underpin manufacturing activity, with high-tech manufacturing posting a PMI of 52.5 and equipment manufacturing recording 51.0. The consumer goods industry also registered an expansionary reading of 50.7, according to the NBS.

The upturn extended beyond factories, with the non-manufacturing PMI returning to expansion at 50.2 in September, up from 49.0 in August. The services business activity index rose to 50.2 from 49.3.

Composite PMI, covering manufacturing and non-manufacturing, climbed to 50.7 from 49.5, also moving back above the 50-point threshold, NBS data showed.