Beijing (TDI): China’s factory and services activity contract for the fifth straight month in September, , suggesting that Beijing may need to implement further stimulus to meet its 2024 growth target.
The National Bureau of Statistics (NBS) reported a slight rise in the purchasing managers’ index (PMI) to 49.8 in September, up from 49.1 in August.
Despite this improvement, the PMI remains below the critical 50 threshold that separates growth from contraction, although it exceeded the median forecast of 49.5 in a Reuters poll.
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This marks the highest reading in five months.
However, the data, combined with a disappointing private-sector Caixin survey and weak service PMIs, highlight ongoing challenges for Chinese policymakers.
Officials have acknowledged the economy is facing “new problems” and are calling for more substantial stimulus measures.
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Last week, authorities launched their most aggressive stimulus package since the COVID-19 pandemic, which helped propel Chinese stocks to their best weekly performance in nearly 16 years.
This rally continued on Monday.
Economists noted some positive indicators in the PMI data for manufacturing, but questions remain about whether last week’s significant policy changes—including relaxed property restrictions in major cities—will be enough to spark a recovery.
