China's September Manufacturing PMI Falls Below 50... Lowest Since February 2022 at 35.7 (Update)

Decline for 6 Consecutive Months Since 51.9 in March, China's Manufacturing Contraction Realized
Non-Manufacturing PMI 53.2, Rebounds After One Month

[Asia Economy Beijing=Special Correspondent Jo Young-shin] China's manufacturing Purchasing Managers' Index (PMI) for September fell below 50. Concerns that the Chinese economy is rapidly cooling have become a reality.

The National Bureau of Statistics of China announced on the 30th that the manufacturing PMI for September recorded 49.6, down from 50.1 in the previous month. This is the lowest level in 19 months since recording 35.7 in February last year.

February last year was when COVID-19 spread nationwide, and China's manufacturing industry was virtually at a complete standstill. The manufacturing PMI had shown levels above 50 since responding with 52 in March last year. This year, it rose to 51.9 in March but has shown a downward trend every month since then.

The manufacturing PMI is an indicator showing economic trends; a baseline of 50 or above indicates economic expansion, while below 50 indicates economic contraction.

All components of the manufacturing PMI?production index, new orders index, raw materials inventory index, employment index, and logistics delivery index?recorded below the critical threshold of 50. In September, the production index was 45.9, new orders index 49.3, raw materials inventory index 48.2, employment index 49.0, and logistics delivery index 48.1. This indicates that Chinese manufacturing is under comprehensive pressure due to slowing production activities and declining market demand.

On the other hand, the non-manufacturing PMI, which reflects service sector trends, rebounded significantly and rose above the baseline.

The non-manufacturing PMI for September was recorded at 53.2. The non-manufacturing PMI had fallen below the critical point at 47.5 in the previous month.

The National Bureau of Statistics of China added that the composite PMI for September was 51.7.

This content was produced with the assistance of AI translation services.