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China’s Manufacturing Recovery Faces Test From Weak Domestic Demand

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China News | October 11, 2026. China’s factory activity returned to modest growth in September, but weak domestic demand remains a concern for the world’s second-largest economy.

What happened?

The official manufacturing purchasing managers’ index rose to 50.1, just above the level separating expansion from contraction. A separate private survey pointed to stronger growth among its respondents.

Why it matters

AI-related demand and export-oriented production have helped parts of the industrial sector. The property slump and subdued household spending continue to constrain a broader recovery.

What happens next?

The next manufacturing surveys, export figures and retail data will help show whether September’s improvement is durable rather than temporary.

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Source: Read the original reporting.

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