China’s September PMIs Return to Expansion Territory, Official Manufacturing at 50.1

• China’s official manufacturing PMI rose to 50.1, non-manufacturing 50.2.
• Private S&P/RatingDog manufacturing PMI hit 52.1, 10th month above 50.
• All China PMIs now in expansion; composite above 50.

China’s economic activity showed signs of a modest uptick in September as both official and private Purchasing Managers’ Index (PMI) data returned to expansion territory. The National Bureau of Statistics (NBS) reported its Manufacturing PMI at 50.1, up from 49.8 and meeting expectations, while the Non-Manufacturing PMI jumped to 50.2, exceeding forecasts. Concurrently, the private RatingDog/S&P Global Manufacturing PMI climbed to 52.1, surpassing both prior and expected figures, with its Services PMI also rising to 51.6. These stronger readings, particularly the official manufacturing index moving above the 50-point threshold for the first time in three months, are generally seen as supportive for China-sensitive assets like the Yuan and industrial commodities. Despite this, the Australian Dollar (AUD) struggled to gain traction against the US Dollar (USD), with AUD/USD declining, as positive Chinese data was overshadowed by in-line Australian inflation figures. The market now heads into a week-long Chinese holiday, with some analysts noting that domestic demand remains weak and further policy support may be sought.