China’s manufacturing activities grew at slower pace in Sept, services activities expanded at slowest pace this year – private survey
DATA MACRO
China’s manufacturing activities grew at slower pace in Sept, services activities expanded at slowest pace this year – private survey
DATA MACRO

China’s manufacturing activities grew at slower pace in Sept, services activities expanded at slowest pace this year – private survey

 

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China’s Caixin manufacturing PMI reached 50.6 in September, remaining in the expansionary territory but falling from 51 in the previous month.

The sub-indexes showed that the sector’s production expanded at a faster pace in September, new orders grew at a slower pace, and in particular new export orders continued to shrink, though picking up in the contractionary territory. 

Employment in the manufacturing sector slipped into contraction again after significant improvement in August. The pickup in production led to expansion purchases and inventories of raw materials, while disruptions to logistics due to bad weather drove high products’ inventories, showed the data. 

Prices of raw materials including industrial metals, chemicals and crude oil rose in September, sending the sub-index for purchasing prices of raw materials’ to a new high since February this year. 

Manufacturers managed to passed on the higher cost to downstream industries amid improving market demand and the sub-index for the sector’s products’ factory-gate prices returned to expansion, snapping six-month falling streak.

The Caixin services PMI reached 50.2 in September, remaining in expansion for the 9th straight months, but hitting the lowest level this year, down from 51.8 in the previous months. 

The Caixin composite PMI, which tracks both the services and manufacturing sectors reached 50.9, marking the lowest this year and falling by 0.8 percentage points from the previous month.

The sub-indexes for services business activities and new orders both remained in expansion for the ninth straight month, but both hitting the lowest in nine months. The sub-index for new export orders rebounded in September. 

The sub-index for employment remained in expansion for the eighth consecutive month, but hitting the lowest since February. The services sector’s cost increased slightly last month, with surveyed companies saying that both labour cost and fuel cost rising, while the prices of services products rose in response to higher cost.

The services sector’s confidence weakened further, with the sub-index for business expectations hitting a new low since December 2022, falling for the third straight months.