China’s factory survey returns to growth. Is the recovery broadening?

China’s official manufacturing purchasing managers’ index rose to 50.1 in September from 49.8 in August, the National Bureau of Statistics reported on Wednesday. A reading above 50 indicates that more surveyed manufacturers reported improving conditions than worsening ones. The separate non-manufacturing index, covering services and construction, rose to 50.2.

Does that mean China’s economy is growing strongly again?

Not by itself. The surveys point to a modest improvement in activity, helped by fewer weather disruptions and demand for technology-related goods. They do not erase the strain from weak household spending, investment and the property downturn. A PMI is a monthly survey signal, not a measure of the whole economy’s output.

For readers, the useful takeaway is that factories and domestic consumers can be moving at different speeds. The next question is whether new orders and actual spending keep improving after the holiday period.