China factory activity grows at fastest pace in 5 months in Sept: RatingDog PMI

In September, China's manufacturing sector experienced its fastest growth in five months, according to a private-sector survey, with the RatingDog Manufacturing PMI rising to 52.1 from 51.5 the previous month. This reading, which stayed above the 50 mark separating growth from contraction for the 10th consecutive month, was also the highest since April.

The RatingDog services PMI increased to 51.6 from 51.4, surpassing expectations of 51.3. Meanwhile, China's official manufacturing PMI rose to 50.1 from 49.8, ending two months of decline. Overall, the manufacturing sector has been a relative strength this year, driven primarily by external demand as domestic consumption and investment have lagged.

The official non-manufacturing PMI climbed to 50.2 from 49.0, exceeding forecasts of 49.2. The composite PMI, covering both manufacturing and services, rose to 50.7 from 49.5. This rebound in factory activity followed heavy rain and typhoons that disrupted production in parts of China in August. Despite this improvement, the growth comes amid weak domestic demand, a prolonged property downturn, and cautious consumer spending.

Recent measures announced by the State Council could help bridge the gap by year-end, but the economic divergence remains evident. The State Council meeting chaired by Premier Li Qiang pledged a package of measures aimed at stabilizing the property market, supporting employment, and boosting incomes. The PMI data suggests a modest uptick in September's activity data, potentially aiding third-quarter GDP recovery from the 4.3% growth seen in the second quarter.