Chinese manufacturing business activity continued to expand in September while manufacturers’ operating conditions saw no improvement against the previous month amid subdued growth momentum, official data showed on Oct 1.

The manufacturing purchasing manager’s index (PMI), a key measure of factory activity in China, posted at 51.1 in September, unchanged from August’s reading, according to the data released by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing.

A reading above 50 indicates expansion, while a reading below 50 represents contraction. The NBS manufacturing PMI samples 3,000 enterprises of various sizes nationwide.

In terms of the size of the surveyed enterprises, the PMI of large-sized manufacturers posted at 52 in September, up 0.1 percentage point from August. That of medium-sized enterprises was at the threshold of 50, also up 0.1 percentage point month on month.

The PMI of small-sized manufacturers registered at 48.6, down 0.5 percentage point from the previous month, and remained in the contraction territory, the NBS said.

Among the sub-indices of the PMI, the production sub-index posted at 53.6, up 0.4 percentage point from August, and was the second highest reading this year, second to the 54.2-reading in July.

The sub-index of new export orders rose 0.2 percentage point from the previous month to 50.2. New orders index lost 0.3 percentage point to 52.2 in September.

The finished goods inventory index posted at 47.2 in September, down 0.9 percentage point month on month, after rising for three consecutive months.

In addition, the index of production and business activity expectation dropped 1.9 percentage points month on month to 56 in September.

“The September PMI remains above the 50 threshold and indicates no change to the basic trend of steady economic growth in the future,” said Zhang Liqun, an economist at the Development Research Center of the State Council.

The rise of the production sub-index suggested a rebound of industrial growth last month, he said.

The retreats in the indices of new orders, finished goods inventory, purchase quantity and raw material purchase price indicate continuous de-stocking activities and low confidence among enterprises, which suggest that the Chinese economy still faces downward pressure, Zhang said.