China factory activity improves in September amid trade war

China's factory activity improved in September ahead of talks with Washington aimed at ending a tariff war.

Surveys released Monday by an industry group and a business magazine both showed improvement, though gains were small.

The China Federation of Logistics and Purchasing said its purchasing managers' index rose to 49.8 from August's 49.5 on a 100-point scale on which numbers below 50 show activity contracting.

The magazine Caixin said its index rose to 51.4 from 50.4.

Demand for Chinese goods has been hurt by weakening domestic and global economic growth as well as US tariff hikes in a fight over trade and technology.

Negotiators are due to meet next week in Washington but there has been no sign of progress toward ending the dispute, which threatens to tip global economic growth into a recession.

"We don't expect a meaningful breakthrough," said Citigroup economists in a report.

"Even if there is a ceasefire, the damage is already partly done because of elevated business uncertainties."
The Federation described September's data as a manufacturing rebound and said "business confidence shows signs of stabilising."