China manufacturing and services indexes both return above 50

China’s official manufacturing PMI returned to expansion in September at 50.1, while the nonmanufacturing index rose to 50.2; a private survey also showed stronger manufacturing and services activity, with new orders improving. Construction and several financial and communications industries helped lift nonmanufacturing activity, and survey respondents reported greater optimism. The rebound offers a modest sign of stabilization, but weak domestic demand, higher energy costs and concerns among trading partners about China’s manufacturing capacity and reliance on exports continue to weigh on the outlook. Beijing announced targeted fiscal and monetary support, though Nomura economists judged the measures too limited to address major growth barriers, while Goldman Sachs said their wider impact would depend on implementation.