China factory sector grows in September driven by AI demand

China's factory activity returned to growth in September as the official manufacturing purchasing managers' index moved above the expansion threshold. Strong production levels and demand linked to artificial intelligence drove the industrial rebound during the month. Despite this positive shift, weak domestic demand, lower employment, and ongoing troubles in the property sector continued to cause concern. ## Context Manufacturing indexes like the PMI help economists track the health of an industrial economy by measuring key factors like new orders and output. When these indexes rise above the growth threshold, it shows that factory output is expanding compared to the previous month.