The Caixin General China Manufacturing Purchasing Managers' Index (PMI), a private gauge of Chinese manufacturing activity, improved slightly in September, in the latest sign the world's second-largest economy is stabilizing.
The Caixin manufacturing PMI edged up to 50.1 in September from a reading of 50 the previous month, according to a survey conducted by financial information service provider Markit, sponsored by Caixin Media. A reading above 50 indicates expansion, while anything below represents contraction.
It was only the second time the index had been in expansionary territory since February 2015.
"The readings for the manufacturing PMI over the past three months seem to indicate that the economy has begun to stabilize. But given the growth rate of fiscal income has slowed recently while expenditure has swung, there is insufficient momentum to drive future economic growth," said Zhong Zhengsheng, director of macroeconomic analysis at CEBM Group, a subsidiary of Caixin.
According to PMI sub-indices, output and total new orders continued to expand, while companies raised their purchasing activity for the third month in a row. Inflationary pressures appeared to intensify during September with both input costs and output charges rising at quicker rates than in August.
China's official manufacturing PMI, which focuses on larger companies, will be released on October 1. The official manufacturing PMI for August rose to 50.4, up from 49.9 for July.
The PMI data represents the latest in a series of economic indicators showing modest improvement in the economy. Earlier this month, official data showed accelerating growth in industrial output, retail sales and industrial company profits.
