The upturn was driven by stronger demand, with both new orders and new export orders climbing. Promotional efforts, new product launches, and healthier market conditions supported the fastest expansion in new business since February, S&P Global said in a press release.
Export orders increased for the first time since March, helping production grow at the quickest pace in three months. Manufacturers responded by boosting purchasing activity, rebuilding inventories, and working through higher backlogs, which eased pressure on capacity. Employment trends stabilised, with job shedding slowing as some firms added staff to meet demand.
Despite improved supply conditions and shorter lead times, competitive pressures forced manufacturers to cut selling prices slightly to sustain sales, while exporters implemented only marginal price hikes.
Business confidence strengthened to its highest since March, supported by expectations of stronger sales, government policy support, and product innovation.
“Notably, the sub-indices for both demand and production remained in expansion territory. On the demand side, new orders performed well, while new export orders returned to growth for the first time since March 2025—a relatively positive signal that eases concerns over recent export weakness,” said Yao Yu, founder at RatingDog.
Yu added: “The pace of input material inventory accumulation slowed, while finished goods inventories continued to rise. Input prices climbed further but output prices fell moderately, highlighting ongoing pressure on profits. Overall, September’s PMI improvement was broader based, with most major sub-indices showing expansion.”
Meanwhile, China’s manufacturing PMI rose to 49.8 in September, up 0.4 points from August, according to official data from the National Bureau of Statistics (NBS). While still below 50, indicating contraction, production accelerated with the output sub-index hitting a six-month high at 51.9.
ALCHEMPro News Desk (SG)
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