Official factory PMI shrinks in Sept, albeit more slowly
Private survey reading falls notably from August expansion
Official services PMI cools for 1st time since December
Expectations on fiscal aid rise to spur growth momentum

BEIJING, Sept 30 Reuters China39;s factory activity shrank for a fifth straight month and the services sector slowed sharply in September, suggesting Beijing will need even more stimulus to hit its 2024 growth target with only three months left in the year.

The National Bureau of Statistics NBS purchasing managers39; index PMI released on Monday nudged up to 49.8 in September from 49.1 in August, still below the 50mark separating growth from contraction but beating a median forecast of 49.5 in a Reuters poll. The reading was the highest in five months.

However, paired with a downbeat privatesector Caixin survey and weak service PMIs, the data showed China39;s factory and consumer activity remains a pain point for policymakers who acknowledged the economy faces new problems and have called for more forceful stimulus.

Authorities last week launched their most aggressive stimulus package since the COVID19 pandemic, which helped China39;s stocks post their best weekly performance in nearly 16 years. Share markets extended their rally on Monday.

Economists say while the PMIs showed some bright spots for manufacturing, the bigger question now is on whether last week39;s big policy announcements, which include loosened property curbs in China39;s…