China manufacturing unexpectedly shrinks, services offer support

Employees work on the production line of American infant product and toy manufacturer Kids II Inc. at a factory in Jiujiang, Jiangxi province, China June 22, 2021. REUTERS/Gabriel Crossley

  • Sept official manufacturing PMI at 49.6 vs 50.1 in Aug
  • Sept official services PMI at 53.2 vs 47.5 in Aug
  • Sept official composite PMI at 51.7 vs 48.9 in Aug

BEIJING, Sept 30 (Reuters) – China’s factory activity unexpectedly shrank in September due to wider curbs on electricity use and elevated input prices, while services returned to expansion as COVID-19 outbreaks receded, offering some relief to the world’s second-biggest economy.

The official manufacturing Purchasing Manager’s Index (PMI) was at 49.6 in September versus 50.1 in August, data from the National Bureau of Statistics (NBS) showed on Thursday, slipping into contraction for the first time since February 2020.

Analysts in a Reuters poll had expected the index to remain steady at 50.1, unchanged from the previous…

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