Workers assemble loader transmission mechanisms at a manufacturer in Qingzhou, China.
Noor Photos | Noor Photos | Getty Images
China factory activity shrinks September grew for a fifth straight month as the world's second-largest economy struggled to regain growth momentum.
The official manufacturing PMI was 49.8 in September, compared with 49.1 in August, 49.4 in July and 49.5 in June. According to data Data released by the National Bureau of Statistics on Monday.
A PMI reading above 50 indicates an expansion in economic activity, while a reading below that level indicates a contraction. The data beat the 49.5 expected by economists polled by Reuters.
Zhao Qinghe, a senior statistician at the National Bureau of Statistics, said that the overall economic climate has improved, with the PMI rising to 49.8%, manufacturing activities accelerating, and high-tech manufacturing and equipment manufacturing continuing to lead.
However, China Caixin PMI what The number was 49.3, compared with 50.4 in August, according to a private survey compiled by S&P Global.
Data released by Caixin on Monday showed that China's manufacturing industry experienced its worst contraction in 14 months in September, driven by falling demand and a weak labor market.
Manufacturing continues to face growing headwinds as a protracted economic slowdown and a housing crisis dampen domestic demand. At the same time, Western countries' restrictions on Chinese exports, including electric vehicles, have also heightened concerns.
The data is the latest in a series of disappointing Chinese economic indicators. The world's second-largest economy still faces weak domestic demand, a sluggish housing market and rising unemployment.
Data released by the National Bureau of Statistics on Friday showed that China's industrial profits fell by 17.8% year-on-year in August, the largest decline in more than a year.
Last month, China's retail sales, industrial production and urban investment growth rates were all lower than expected. Retail sales increased by 2.1% compared with the same period last year, and industrial production increased by 4.5% compared with the same period last year.
Last week, the Chinese government stepped up efforts to boost domestic sluggish economic growth. The People's Bank of China cut the deposit reserve ratio (RRR) – the amount of cash banks need to have on hand as reserves – by 50 basis points. The seven-day reverse repurchase rate was also lowered by 20 basis points from 1.7% to 1.5%.
China's top leaders also held a high-level meeting chaired by President Xi Jinping on Thursday, calling for an end to the property downturn and emphasizing the need for stronger fiscal and monetary policy support.
Chinese stocks rose after the news, posting its best week in nearly 16 years.
This is a development story. Please check back later for updates.