BEIJING, Sept. 30 (Xinhua) -- China's manufacturing activity was back in expansion territory in September while non-manufacturing activity rebounded markedly, with both above the boom-bust line, official data showed on Wednesday, adding to signs of a firming recovery in the world's second-largest economy.
The purchasing managers' index (PMI) for China's manufacturing sector stood at 50.1 in September 2026, up 0.3 percentage points from August and returning to the expansion zone, according to the National Bureau of Statistics (NBS).
A reading above 50 indicates expansion, while a reading below 50 signifies contraction.
The manufacturing sector's business climate improved further in September, with the PMI rising for a second consecutive month, said Huo Lihui, a chief statistician with the NBS.
Among the 21 industries surveyed, 12 reported a PMI above the expansion threshold, four more than the previous month, Huo noted.
The sector saw expansion in both manufacturing output and market demand in September. The production sub-index climbed to 51.7, up 1.3 percentage points from August, while the new orders index was at 50.5, still above the threshold.
Driven by the acceleration in production, enterprises' willingness to purchase strengthened, with the procurement volume index reaching 51.0, an increase of 0.5 percentage points from the previous month, said Huo.
PMIs for the equipment manufacturing industry, the high-tech manufacturing industry and the consumer goods industry stood at 51, 52.5 and 50.7, respectively, all remaining in the expansion zone.
Affected by rising international commodity prices and growing demand in some industries, the purchasing price index for major raw materials and the ex-factory price index for manufacturing stood at 60.8 and 54, respectively, up 4.2 percentage points and 3.6 percentage points from the previous month.
PMIs for medium-sized and small manufacturing enterprises came in at 49.7 and 48.9, respectively, increases of 0.3 percentage points and 1 percentage point from the previous month, as business activity picked up.
Non-manufacturing activity also increased. The business activity index for the non-manufacturing sector reached 50.2 in September, a rise of 1.2 percentage points from August. The construction sector index rose 3.4 percentage points to 50.3, the highest level this year, while the services sector index increased by 0.9 percentage points to 50.2, with both returning to expansion.
"The traditional peak season and the upcoming National Day holiday have driven up demand in transportation, tourism and related consumer services," said Wu Wei, an analyst with the China Logistics Information Center.
The improvement came as a package of pro-growth measures was rolled out at a faster pace. The National Development and Reform Commission on Wednesday said it, together with the Ministry of Finance, had allocated the fourth and final batch of 62.5 billion yuan (around 9.28 billion U.S. dollars) in ultra-long special treasury bonds for consumer goods trade-in programs, bringing this year's total to 250 billion yuan.
Starting Oct. 1, China will implement interest subsidies for housing loans for eligible first-home buyers, offering an annualized subsidy of 1 percentage point on loans of up to 1 million yuan for up to five years, the Ministry of Finance and other departments said.
The People's Bank of China, China's central bank, announced a raft of strengthened support measures on Tuesday, including cutting the one-year interest rate of the pledged supplementary lending (PSL) facility from 1.75 percent to 1.5 percent, to better incentivize policy banks to support the real economy and serve national strategies.
It has also decided to increase the quota of the relending facility for sci-tech innovation and technological upgrades by 200 billion yuan and for agriculture and small and micro businesses by 500 billion yuan, out of which 300 billion yuan is dedicated to financial support for private firms.
"The recent policy mix is characterized by stepped-up counter-cyclical adjustments and the concentrated rollout of incremental tools," said Wen Bin, chief economist with China Minsheng Bank.
"With existing policies becoming more effective and incremental policies continuing to be introduced, economic momentum is expected to pick up further in the fourth quarter," he noted.
Looking ahead, China's manufacturing sector is expected to maintain steady and moderate expansion in the fourth quarter, said Wen Tao, an analyst with the China Logistics Information Center, citing accelerated implementation of major projects, including about 2 trillion yuan of planned investment by central state-owned enterprises in six major infrastructure networks this year. ■
