(Yicai) Sept. 30 -- Activity in China’s manufacturing sector shrank for the fifth consecutive month in September but showed some signs of recovery, according to official data.

The manufacturing purchasing managers’ index came in at 49.8 this month, compared with 49.1 in August, 49.4 in July, and 49.5 in both June and May, according to data released by the National Bureau of Statistics today. A reading below 50 indicates contraction.

New orders rose to 49.9 in September from 48.9 the previous month, ending a five-month drop, the NBS data also showed. Meanwhile, new export orders fell to 47.5 from 48.7 in the period. Production returned into expansion territory after a short contraction.

The manufacturing PMI improved in September because some industries ushered in the peak season, the policies for large-scale equipment renewal and consumer goods trade-in showed their effects, and the overall market demand stabilized.

The increase in the manufacturing PMI was not only due to seasonal factors but also because the Chinese economy began to stabilize, according to Zhang Liqun, an analyst at the China Federation of Logistics and Purchasing. Production, new orders, and prices rebounded, reflecting the overall recovery of enterprises’ production and business activities, he added.

However, the purchase volume and imports continued to decline this month, indicating that demand is still insufficient and the recovery trend of production and business activities is still unstable, Zhang noted.

China’s manufacturing sector has rebounded in terms of supply and demand, and economic fundamentals have consolidated, said Wen Tao, an expert from the China Logistics Information Center.

Editor: Futura Costaglione