China’s factory activity expanded for the first time since June, ending the third quarter on a bright note as policymakers moved to deploy new measures to support the economy. The official manufacturing purchasing managers’ index was 50.1 in September, up from 49.8 in August and in line with the forecasts of economists surveyed by Bloomberg. The non-manufacturing measure of activity in construction and services unexpectedly returned to positive territory at 50.2, the National Bureau of Statistics said Wednesday.

A reading above 50 indicates expansion. The figures come hours after the government embarked on its biggest stimulus effort in two years, making it more likely China will meet its annual growth target of 4.5%-5% after the pace slipped below that range last quarter. The economy has been under pressure despite resilient exports and an AI-driven boost to industrial profits.

Consumption growth has slowed to near zero, business confidence remains weak, and investment has continued to contract. Even so, external conditions have become modestly more supportive after the US and China agreed to extend their trade truce by two months, reducing near-term trade uncertainty.