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Factory activity in China returned to growth in September, with the official manufacturing purchasing managers' index rising to 50.1 points from 49.8 in August, marking a slight expansion supported by demand for AI devices and equipment. However, weak domestic consumer demand and rising energy costs—caused by the Middle East conflict—remain major obstacles, along with signs of pressure on China's export-dependent economy. Recent government measures to support growth have been limited and require further action to effectively boost economic activity.
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