China’s factory activity shrinks for fifth straight month in September

China’s factory activity contracted for a fifth straight month in September, while service activity slid into contraction for the first time since December 2023, suggesting Beijing may need to take more easing measures to reach its year-end economic growth target.

The National Bureau of Statistics purchasing managers' index (PMI) released on Sept. 30 edged up to 49.8 in September from 49.1 in August, but remained below the 50-mark that indicates contraction.

The statistics showed that China non-manufacturing PMI fell to 49.9 points in August, the first time below 50 points since December 2023.

The sub-index for the construction sector rose to 50.7 points from 50.6 points during the same period, Reuters reported.

This is in line with the Caixin China General Services PMI compiled by S&P Global, which reported today, Sept. 30, that the manufacturing PMI dropped to 49.3 points from 50.4 points in August.

Its services counterpart fell to 50.3 points from 51.6 points, recording the lowest reading –and the lowest growth rate–since September 2023.