On September 30, the Service Industry Survey Center of the National Bureau of Statistics and the China Federation of Logistics and Purchasing released the China Purchasing Managers' Index. In response, Zhao Qinghe, Senior Statistician of the Service Industry Survey Center of the National Bureau of Statistics, provided an interpretation. Zhao Qinghe noted that in September 2017, the China Manufacturing Purchasing Managers' Index and the Non-manufacturing Business Activity Index rose significantly, reaching their highest points since May 2012 and June 2014, respectively.

　　I. Manufacturing Purchasing Managers' Index Hits a New High in Recent Years

　　In September, the manufacturing PMI was 52.4%, rising for two consecutive months and reaching its highest point since May 2012. It rose by 0.7 and 2.0 percentage points month-on-month and year-on-year, respectively. The manufacturing sector continued to maintain a stable and improving development trend, with the pace of expansion accelerating somewhat. The main features this month were as follows: First, both supply and demand continued to improve, with coordination further enhanced. The production index and new orders index were 54.7% and 54.8%, up 0.6 and 1.7 percentage points from the previous month, respectively, both reaching recent highs, and the new orders index exceeded the production index for the first time this year, making the supply-demand relationship more balanced. Second, domestic and international market demand improved, and imports and exports grew steadily. The new export orders index was 51.3%, up 0.9 percentage points from the previous month and the second-highest level this year. The imports index was 51.1%; although it declined slightly, it remained in the expansion range above 51.0%, further consolidating the momentum of stabilization and improvement in manufacturing foreign trade. Third, the industrial structure continued to optimize, and new drivers of growth developed faster. The PMIs for the equipment manufacturing industry and high-tech manufacturing industry were 53.3% and 52.9%, 0.5 and 1.0 percentage points higher than the previous month, respectively, with both growth rates accelerating. Among them, the PMIs for industries such as automobile manufacturing, special-purpose equipment manufacturing, electrical machinery and apparatus manufacturing, and computer, communication and electronic equipment and instruments and meters manufacturing were all significantly higher than the overall manufacturing level. Fourth, with the National Day and Mid-Autumn Festival holidays approaching, the expansion of the consumer goods manufacturing industry accelerated. The PMI for consumer goods manufacturing was 53.4%, up 1.5 percentage points from the previous month and a four-month high. Among them, the PMIs for industries such as food and wine, beverages and refined tea manufacturing, and textile, apparel and accessories manufacturing rose significantly.

　　According to the survey results, more than 40% of enterprises reported rising raw material prices. The purchase price index for major raw materials rose to 68.4%, and mid- and downstream industries were concerned that cost pressures would further increase. Among them, the purchase price indices for major raw materials in industries such as papermaking and printing, wood processing and furniture manufacturing, and chemical raw materials and chemical products manufacturing were in the high range above 75.0%.

　　By enterprise size, the PMI for large enterprises was 53.8%, up 1.0 percentage point from the previous month, remaining in a relatively high expansion range for the year. The PMI for medium-sized enterprises was 51.1%, up slightly by 0.1 percentage point from the previous month. The PMI for small enterprises was 49.4%, up 0.3 percentage points from the previous month.

　II. Non-manufacturing Business Activity Index Rises to a Relatively High Prosperity Range

　　In September, China's non-manufacturing business activity index was 55.4%, up 2.0 percentage points from the previous month and the highest point since June 2014, indicating stronger expansion momentum in the non-manufacturing sector.

　　The service industry achieved rapid growth. The business activity index was 54.4%, up 1.8 percentage points from the previous month, and the service industry continued its stable and relatively rapid development trend. Driven by the acceleration of manufacturing production expansion, producer services grew rapidly, with the business activity index at 59.7%, 5.1 percentage points higher than the previous month. By major industry category, the business activity indices for industries such as wholesale, telecommunications, radio and television and satellite transmission services, internet and software information technology services, monetary and financial services, capital market services, and insurance were all in the high prosperity range above 60.0%. Business activities were relatively active, and total business volume grew significantly. The business activity indices for industries such as railway transportation, road transportation, catering, real estate, and resident services and repair were below the critical point, and their prosperity declined somewhat. From the perspective of market demand and expectations, the new orders index and business activity expectations index were 51.5% and 60.8%, 1.2 and 0.7 percentage points higher than the previous month, respectively. Market demand in the service industry rose steadily, and business confidence further strengthened.

　　The construction industry returned to a high prosperity range. With seasonal changes, the construction industry entered its peak production season, and enterprises accelerated construction progress. This month's business activity index was 61.1%, up 3.1 percentage points from the previous month. Among them, the business activity index for civil engineering construction rose to 61.2%, a sharp increase of 8.1 percentage points from the previous month. From the perspective of market and labor demand, the new orders index and employment index were 56.9% and 56.4%, 2.4 and 2.1 percentage points higher than the previous month, respectively. Enterprise employment rose, demand growth accelerated, and the construction industry continued to develop rapidly.