China’s factory activity returns to growth in September

China's economy rebounded in September, with factory activity returning to growth after two months of decline, according to official data released on Tuesday. The manufacturing purchasing managers' index (PMI) stood at 50.1, just above the critical 50 mark that separates expansion from contraction. This figure marked an improvement from the 49.8 and 49.2 recorded in July and August, respectively, and was in line with Bloomberg's forecast of 50.0 in a survey of economists.

National Bureau of Statistics statistician Huo Lihui attributed the recovery to three key industries, including equipment manufacturing, high-tech manufacturing, and consumer goods. The non-manufacturing PMI also came in at 50.2, surpassing the Bloomberg forecast of 49.2 and reflecting growth in services and construction sectors.

Beijing is looking to sustain economic momentum despite challenges such as trade tensions with Washington and a real estate sector crisis that has dampened consumer confidence. The government unveiled a package of targeted policies, including mortgage subsidies and expanded central bank support, to stabilize the property market and boost employment and income.

China's economy has been buoyed by a robust export boom and the surge in demand for its technology products due to the global artificial intelligence craze.