Chinese factory activity expands in September amid AI boom

Factory activity in China expanded in September, with the official manufacturing purchasing managers' index rising to 50.1 from 49.8 in August, according to the National Bureau of Statistics. The figure snapped two consecutive months of contraction and matched the median forecast in a Reuters survey. Business Recorder reported that easing weather disruptions helped factories resume work, while a global AI boom supported industry.

A private survey by RatingDog put the manufacturing reading at 52.1, a high for five months, against 51.5 in August. The non-manufacturing gauge, which tracks services and construction, improved to 50.2 from 49.0. Analysts note the upturn is patchy, since subdued spending and investment still drag on the outlook.

Analysts say more policy support may be needed because the property slump is weighing on confidence among businesses and households. China unveiled measures on Tuesday to channel cheaper credit toward infrastructure, technology and home purchases. Growth slowed to 4.3% in the second quarter, the weakest pace in over three years, against a full-year target of 4.5% to 5%.