FX.co ★ China Manufacturing Shrinks the Least in 6 Months

In September 2025, China's official NBS Manufacturing PMI increased to 49.8 from 49.4 in August, surpassing market expectations of 49.7. Although factory activity experienced its sixth consecutive month of contraction, the rate of decline was the slowest in this sequence. Manufacturers remained hopeful for additional government policy measures to stimulate domestic demand and awaited clearer indications regarding a trade agreement with the United States. Output continued its upward trend for the fifth month, reaching its fastest pace since March, with a reading of 51.9 compared to 50.8 in August. Purchasing activity also saw its largest increase in six months, rising to 51.6 from 50.4. Meanwhile, new orders (49.7 vs. 49.5), foreign sales (47.8 vs. 47.2), and employment (48.5 vs. 47.9) all experienced slower rates of contraction. Delivery times improved to their best level in seven months, with an index of 50.8 up from 50.5. On the pricing front, input costs hovered near their highest level since October 2024, at 53.2 compared to 53.3, while the decline in selling prices intensified, dropping to 48.2 from 49.1. Lastly, business confidence reached a seven-month high, registering at 54.1 compared to 53.7 previously.