China

China PMIs Improve in September as Manufacturing and Services Return to Expansion

China’s September activity data showed a broad improvement across both manufacturing and services, with most major PMI readings moving above the 50 level that separates expansion from contraction.

The official Manufacturing PMI rose to 50.1 from 49.8, matching expectations and signaling a return to modest expansion. The official Non-Manufacturing PMI improved more sharply to 50.2 from 49.0, beating the 49.2 consensus.

The Composite PMI also strengthened to 50.7 from 49.5, indicating that overall business activity returned to expansion.

Private-sector RatingDog surveys were stronger. The Manufacturing PMI climbed to 52.1 from 51.5, beating expectations of 51.7, while the Services PMI rose to 51.6 from 51.4 and also exceeded forecasts.

The September readings suggest China’s economy gained some momentum at the end of the third quarter, with both factory and service-sector activity improving. For markets, the data are broadly supportive for Chinese equities, industrial commodities and other assets sensitive to Chinese growth, though investors will still watch whether the improvement is sustained in coming months.
China’s Industrial Profit Growth Slows in August

China’s industrial profits rose 15.7% year to date in August, slowing from the previous reading of 17.6%.

The moderation suggests profit growth among Chinese industrial companies lost some momentum, even though earnings remained firmly positive on a cumulative basis.
China Holds Five-Year Loan Prime Rate at 3.50% in September

China kept its five-year Loan Prime Rate (LPR) unchanged at 3.50% in September, matching market the previous month’s level.

The decision signals that Chinese policymakers are maintaining current borrowing-cost settings despite continued concerns about economic momentum and the property sector.
China Industrial Production Beats Forecasts as Investment Weakness Deepens

China’s economic data for August painted a mixed picture, with stronger industrial activity offset by weaker investment and a slight rise in unemployment.

Industrial production increased 5.2% year over year, beating the 4.8% forecast and accelerating from 4.5% previously. The stronger reading suggests China’s manufacturing and industrial sectors maintained momentum despite broader economic pressures.

However, fixed asset investment fell 7.2% year over year, slightly worse than the expected 7.1% decline and deeper than the previous 6.7% contraction. Meanwhile, the unemployment rate edged up to 5.3% from 5.2%, also above expectations.

The figures highlight an uneven Chinese recovery, with industrial strength contrasting with persistent weakness in investment and the labor market.
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China’s New Loans Rebound to 60 Billion Yuan in August but Miss Forecasts

China’s banks extended 60 billion yuan in new loans in August, rebounding from a 340 billion yuan contraction in the previous period but falling well short of market expectations for 480 billion yuan.

The weaker-than-expected lending figure points to continued softness in credit demand despite the return to positive loan growth.
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China Inflation Accelerates in August as Energy Costs Push Producer Prices Higher

China’s inflation picked up in August, with consumer prices rising faster and producer inflation exceeding expectations as higher energy and commodity costs fed through the economy.

The consumer price index rose 0.8% year over year, matching expectations but accelerating from 0.5% in July. On a monthly basis, CPI increased 0.4%, above the 0.3% forecast and reversing July’s 0.1% decline.

Producer prices showed a stronger-than-expected increase. China’s PPI rose 3.8% year over year, above the 3.6% forecast and up from 3.5% in July. Higher international crude oil was among the main drivers, with energy costs elevated by supply concerns surrounding the Middle East conflict.

The figures suggest external cost pressures are lifting Chinese inflation, although underlying domestic demand remains relatively weak. With Brent crude trading around $100 amid escalating Middle East supply risks, energy prices could remain an important source of inflation pressure for China in the coming months.
China’s Trade Surplus Widens to $119.09 Billion as Exports Rise 25%

China’s trade surplus came in slightly above expectations in August as exports maintained strong growth while imports increased less than economists had forecast.

Exports rose 25.0% year over year, matching the consensus estimate and accelerating from 23.9% previously.

Imports increased 28.2%, up from the previous 27.5% gain but below expectations for 30.0% growth. Despite the miss, the strong increase suggests domestic demand for foreign goods remained robust.

China recorded a $119.09 billion trade surplus, slightly above the $118.60 billion forecast.

The figures show that China’s external trade remained resilient in August, with export growth accelerating and the trade surplus exceeding expectations. However, the weaker-than-forecast import reading provides a more mixed signal about the strength of domestic demand.
China Services PMI Rises to 51.4 in August, Beating Expectations

China’s services sector expanded at a faster pace in August, with the RatingDog Services PMI rising to 51.4 from 50.4 in the previous month.

The reading came comfortably above market expectations of 50.6 and remained above the 50-point threshold separating expansion from contraction. The improvement suggests that activity in China’s services economy gained momentum during August.
China Manufacturing PMI Rises to 51.5 as Factory Activity Strengthens

China’s manufacturing sector expanded at a faster pace in August, providing a positive signal for the world’s second-largest economy as factory demand, production and exports improved.

The RatingDog China General Manufacturing PMI, compiled by S&P Global, rose to 51.5 from 50.9 in July, beating expectations of 51.0. A reading above 50 indicates expansion.

Factory output increased at the fastest pace in three months, supported by stronger demand and additional production capacity. New orders also accelerated, while new export business recorded its strongest increase in six months.

Overall, the RatingDog data are moderately positive for China’s growth outlook and could support sentiment toward Chinese equities and industrial commodities, although weak domestic demand and persistent pricing pressure remain important risks.
China’s Manufacturing PMI Improves in August, but Broader Economy Remains in Contraction

China’s manufacturing activity improved more than expected in August, but the latest PMI data showed that the broader economy remained below the key 50-point threshold separating expansion from contraction.

The official Manufacturing PMI rose to 49.8 from 49.2 in July, beating market expectations of 49.5. The improvement brought the factory sector close to stabilization, although the sub-50 reading indicates manufacturing activity continued to contract.

The picture was weaker in services and other non-manufacturing industries. China’s Non-Manufacturing PMI remained at 49.0, below the 49.5 forecast and unchanged from the previous month.

Meanwhile, the Composite PMI edged up to 49.5 from 49.3. Despite the improvement, it also remained in contraction territory.

Overall, the August figures suggest that conditions in Chinese manufacturing are improving, but weakness in the services side of the economy continues to constrain the recovery. The mixed data could maintain pressure on Chinese policymakers to provide additional support for domestic demand and economic activity.
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