China's manufacturing PMI returned to the expansionary zone in September 2026, while the non-manufacturing gauge also rebounded, pointing to a modest recovery in economic activity.

The manufacturing purchasing managers' index came in at 50.1% in September, the non-manufacturing business activity index at 50.2% and the composite PMI output index at 50.7%, up 0.3, 1.2 and 1.2 percentage points respectively from the previous month, according to data released by the National Bureau of Statistics on September 30.

The manufacturing PMI rose for a second straight month, climbing back above the 50-point mark that separates expansion from contraction. Of the 21 industries surveyed, 12 recorded readings above the threshold, four more than a month earlier, indicating a broader recovery across the manufacturing sector.

The three key sectors expanded at a faster pace, said Huo Lihui, chief statistician at the service industry survey center of the National Bureau of Statistics. The PMIs for equipment manufacturing, high-tech manufacturing and consumer goods stood at 51.0%, 52.5% and 50.7% respectively, all above the threshold, with production and operations at relevant companies generally active. The PMI for high energy-consuming industries came in at 48.0%, up 0.1 percentage point from the previous month, pointing to a modest improvement.

The non-manufacturing business activity index rebounded notably in September, rising 1.2 percentage points from a month earlier to 50.2% and returning to expansion. The services business activity index stood at 50.2%, up 0.9 percentage point from the previous month and back above the threshold. The business activity expectations index for services was 55.5%, as development expectations for the sector continued to improve.

The construction business activity index rose to a year-to-date high of 50.3%, up 3.4 percentage points from the previous month and back in expansion territory, as construction progress accelerated. The business activity expectations index for construction was 55.4%, with construction companies more confident about future market development.

The composite PMI output index is composed of the manufacturing production index and the non-manufacturing business activity index. The composite PMI output index came in above the threshold at 50.7% in September, up 1.2 percentage points from the previous month, indicating that overall production and operations across Chinese companies expanded from a month earlier.