Chinese manufacturing growth edges higher in September

China´s manufacturing sector growth edged higher in September, amid stable new business from abroad.

The Caixin purchasing managers´ index rose from 50.0 in August to 50.1 in September, as expected by economists.

New business from abroad was stable, breaking nine consecutive monthly moves lower.

"While some firms mentioned that underlying client demand had improved, others mentioned that subdued market conditions had weighed on overall growth in new orders," Caixin said.

Hence, companies took a prudent approach to their output decisions.

Levels of employment at China´s factories continued their downward trend, but at their slowest in nine months.

Commenting on Friday´s data, Dr. Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group said: “[...] The readings for the manufacturing PMI over the past three months seem to indicate that the economy has begun to stabilize. But given that the growth rate of fiscal income has slowed recently while expenditures have swung, there is insufficient momentum to drive future economic growth, and there is a risk that industrial output may decline.”