China's Manufacturing Sector Shows Mixed Signs of Recovery in September
Economic indicators from China show a mixed picture in September. While the National Bureau of Statistics (NBS) index for new orders remained in contraction, the RatingDoc report indicated a slight improvement. Meanwhile, production and purchasing activity picked up, suggesting a recovery in the manufacturing sector.
The NBS production index climbed to 51.9 points, marking the first expansion in months, indicating increased activity in large factories. The RatingDoc PMI also rose to 51.2, signaling a recovery in the private sector. However, the NBS index for new orders only rose slightly, remaining below 50, suggesting a gradual improvement in domestic demand without clear expansion.
Inventories showed mixed signals. The NBS reported a slowdown in inventory reduction, with the index for raw materials rising to 48.5 points and finished goods inventories falling to 45.2 points, signaling overcapacity in large operations. Conversely, the RatingDoc PMI showed increasing purchases and finished goods inventories, as private firms deliberately built up stocks to avoid shortages.
China's official PMI rose to 49.8, indicating a slight easing of the industry's contraction. The RatingDoc PMI reported the strongest order intake since February, driven by new products and marketing initiatives, signaling a clear expansion of demand in the private sector. Companies like industrial manufacturers and China National Salt Industry Group have been pursuing growth strategies, including intensified promotion campaigns, innovation, and government fiscal stimulus, to maintain market position amid competition.
While China's manufacturing sector shows signs of recovery, with increased production and orders, the pace of improvement remains uneven. Domestic demand is gradually improving, but export orders still face challenges. Employment also shows signs of stabilization, with fewer layoffs reported. The government and businesses continue to implement measures to stimulate growth and maintain market position.
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