China Manufacturing PMI Returns to Growth in September as AI Boom Lifts High-Tech Output

China's official manufacturing purchasing managers index rose to 50.1 in September from 49.8 in August, ending two straight months of contraction and matching the median forecast in a Reuters poll of 29 economists. The National Bureau of Statistics attributed the expansion to accelerated activity in equipment and high-tech-related manufacturing, with a global boom in AI infrastructure spending lifting demand for Chinese-made technology goods, as well as a pickup in consumer industries.

The private RatingDog manufacturing PMI came in stronger, hitting 51.2 against a forecast of 50.2, the fastest pace of expansion in five months. The NBS non-manufacturing PMI, which covers services and construction, also returned to expansionary territory, climbing to 50.2. The composite PMI combining both surveys edged up to 50.6 from 50.5 in August.

The data offer a degree of relief for Beijing, which has been ramping up stimulus steps to counter a deepening economic malaise marked by a collapse in urban investment and sluggish domestic demand. Policymakers are expected to accelerate fiscal spending and fast-track project approvals, though economists note the full effect of such measures is likely to be felt more in the fourth quarter than in the near term.