In September, China's manufacturing PMI came in at 50.1%, up 0.3 percentage points from the previous month, moving back above the 50-point mark that separates expansion from contraction.

Breaking down by enterprise size, the PMI for large manufacturers stood at 50.6%, unchanged from the prior month and above the threshold. Medium and small manufacturers posted readings of 49.7% and 48.9% respectively, rising 0.3 and 1.0 percentage points from a month earlier, though both remained below the critical level.

Among the five sub-indexes that make up the manufacturing PMI, the production index, new orders index and supplier delivery times index all sat above the threshold, while the raw materials inventory index and employment index were below it.

The production index reached 51.7%, up 1.3 percentage points from the previous month, pointing to faster expansion in manufacturing production activity. The new orders index came in at 50.5%, down 0.1 percentage points from a month earlier but still above the threshold, suggesting continued improvement in manufacturing market demand. The raw materials inventory index was 48.2%, up 0.1 percentage points, indicating a slightly narrower decline in inventories of major raw materials. The employment index stood at 48.4%, down 0.3 percentage points, reflecting a pullback in hiring sentiment among manufacturing firms. The supplier delivery times index was 50.1%, unchanged from the prior month and above the threshold, showing that delivery times for raw material suppliers continued to shorten.

In the non-manufacturing sector, the business activity index for September came in at 50.2%, up 1.2 percentage points from the previous month, marking a clear rebound in non-manufacturing activity.

By industry, the construction sector's business activity index was 50.3%, up 3.4 percentage points from a month earlier. The services sector's business activity index stood at 50.2%, up 0.9 percentage points. Within services, industries including telecom, radio and television broadcasting and satellite transmission services, monetary financial services, and insurance all recorded readings above 55.0%, placing them in a relatively strong expansion range. Capital market services and real estate, by contrast, remained below the threshold.

The new orders index was 46.5%, up 2.4 percentage points from the previous month, indicating a recovery in demand conditions across the non-manufacturing sector. By industry, construction's new orders index was 45.7%, up 3.3 percentage points, while services' new orders index was 46.7%, up 2.2 percentage points.

The input prices index came in at 52.5%, up 1.4 percentage points from a month earlier, showing that overall input costs for non-manufacturing enterprises continued to rise. By industry, construction's input prices index was 54.0%, up 2.8 percentage points, and services' input prices index was 52.2%, up 1.1 percentage points.

The selling prices index was 50.3%, up 1.0 percentage points from the previous month, indicating a modest rebound in overall selling prices for non-manufacturing enterprises. By industry, construction's selling prices index was 48.5%, down 1.3 percentage points, while services' selling prices index was 50.6%, up 1.4 percentage points.

The employment index stood at 45.9%, up 0.5 percentage points from a month earlier, signaling improved hiring sentiment among non-manufacturing enterprises. By industry, construction's employment index was 44.3%, up 1.3 percentage points, and services' employment index was 46.2%, up 0.4 percentage points.

The business activity expectations index was 55.5%, up 0.5 percentage points from the previous month, reflecting strengthened confidence among non-manufacturing enterprises about market prospects. By industry, construction's expectations index was 55.4%, up 3.6 percentage points, while services' expectations index was 55.5%, unchanged from the prior month.

On the composite front, China's composite PMI output index for September came in at 50.7%, up 1.2 percentage points from the previous month and moving above the threshold, indicating that overall production and business activity across Chinese enterprises expanded compared with a month earlier.

September PMI Figures Return to Expansion Territory

Huo Lihui, chief statistician at the Service Survey Center of the National Bureau of Statistics, provided an official reading of China's September 2026 purchasing managers' index. The National Bureau of Statistics' Service Survey Center and the China Federation of Logistics and Purchasing released the figures on September 30, 2026, after which Huo offered her analysis.

In September, the manufacturing PMI, non-manufacturing business activity index and composite PMI output index stood at 50.1%, 50.2% and 50.7% respectively, up 0.3, 1.2 and 1.2 percentage points from the previous month, pointing to a recovery in overall economic activity.

Manufacturing PMI Rises for a Second Straight Month

In September, the manufacturing PMI climbed to 50.1%, returning to expansion territory. Of the 21 industries surveyed, 12 recorded PMI readings above the threshold, four more than the previous month, indicating a broadening of the industries showing improvement.

Production and demand both remained in expansion. The manufacturing production index was 51.7%, up 1.3 percentage points from the previous month, and the new orders index was 50.5%, down slightly by 0.1 percentage points, with both above the threshold, showing continued improvement in manufacturing production and market demand. By industry, agricultural and sideline food processing and pharmaceutical manufacturing both posted production and new orders indexes above 55.0%, indicating relatively rapid release of output and demand, while chemical raw materials and chemical products, ferrous metal smelting and rolling processing, and other industries continued to see both indexes below the threshold. To meet production needs, enterprises stepped up raw material procurement, with the purchases index at 51.0%, up 0.5 percentage points from the previous month.

Price indexes continued to rise. Affected by recent increases in international commodity prices and higher demand in some industries, the main raw material purchase prices index and the ex-factory prices index both rose for a second consecutive month, with overall manufacturing market prices rising notably. The main raw material purchase prices index and ex-factory prices index stood at 60.8% and 54.0% respectively, up 4.2 and 3.6 percentage points from the previous month. By industry, as international crude oil prices rose sharply, both price indexes for petroleum, coal and other fuel processing and chemical raw materials and chemical products climbed above 60.0%.

Three key sectors expanded relatively quickly. The PMI for equipment manufacturing, high-tech manufacturing and consumer goods stood at 51.0%, 52.5% and 50.7% respectively, all above the threshold, indicating relatively brisk production and operations in these industries. The PMI for high energy-consuming industries was 48.0%, up 0.1 percentage points from the previous month, a modest improvement.

Sentiment among small and medium-sized enterprises improved. The PMI for large manufacturing enterprises was 50.6%, unchanged from the previous month, keeping large firms in expansion. Medium and small enterprises posted PMIs of 49.7% and 48.9% respectively, up 0.3 and 1.0 percentage points, with sentiment recovering in both segments.

Non-Manufacturing Business Activity Index Rebounds Notably

In September, the non-manufacturing business activity index came in at 50.2%, up 1.2 percentage points from the previous month, returning to expansion territory and marking a clear improvement in non-manufacturing conditions.

The services business activity index moved back into expansion. It stood at 50.2%, up 0.9 percentage points from the previous month, climbing above the threshold and signaling a recovery in services market activity. By industry, telecom, radio and television broadcasting and satellite transmission services, monetary financial services, and insurance all recorded business activity indexes above 55.0%, placing them in a relatively strong range, with related enterprises continuing to see rapid growth in total business volume. Capital market services and real estate, meanwhile, continued to operate at low levels. The services business activity expectations index was 55.5%, indicating that near-term expectations for services development remain positive.

The construction business activity index reached a year-to-date high. It stood at 50.3%, up 3.4 percentage points from the previous month, returning to expansion territory, with construction progress picking up somewhat. The construction business activity expectations index was 55.4%, reflecting improved confidence among construction enterprises about future market development.

Composite PMI Output Index Above the Threshold

In September, the composite PMI output index came in at 50.7%, up 1.2 percentage points from the previous month and moving above the threshold, indicating that overall production and business activity across Chinese enterprises expanded compared with a month earlier. The manufacturing production index and non-manufacturing business activity index, which together make up the composite PMI output index, stood at 51.7% and 50.2% respectively.