China’s manufacturing activity resumed in September – official PMI is still in contraction

China’s official gauge for manufacturing activities has shown a smaller contraction than expected in September, because Beijing intensified its efforts aimed at curbing industrial overcapacity in the middle of domestic demand and global trade disruptions.

The manufacturing purchasing managers index arrived at 49.8, according to a survey by the National Statistics Bureau, compared to expectations of 49.6. This reading, although contraction, was the strongest since March.

The official manufacturing of China PMI has remained below the growth in the contraction of the 50 benchmarks of the contraction, because the manufacturers are faced with lukewarm domestic demand, exacerbated by higher American rates that have struck the export from Beijing to the largest public market in the world.

The manufacture of the manufacture of the private PMI surveyor has arrived at 51.2 for September, beating the forecasts of economists for 50.2 in a reuters survey, marking its highest level since May.

The non -manufacturing official PMI, which includes services and construction, dropped down to 52.9 in September from 53 in the previous month, while the general services of the general assessment spent at 50 to 50.3.

Private surveys, previously carried out by Caixin and S&P Global, have painted a better table than official polls in previous years, because they have focused more on export -oriented manufacturers.

A meeting of the Chinese Politburo – made up of high -level members of the Chinese Communist Party in power – in October should offer an indication of the Economic Policy of Beijing in response to the slowdown in the third quarter, said Zhiwei Zhang, president and chief economist of asset management.

“Since GDP growth was greater than 5% in H1, the government can tolerate the slowdown in H2 as long as it does not compromise the growth objective of the whole year of 5%,” added Zhang