Economic reports: Gas network expansion in Indonesia, Chinese manufacturing recovery, and job growth in America

The Indonesian government has urged Pertagas, the gas company affiliated with state energy group Pertamina, to expand the gas network to reach homes across Indonesia, with the aim of reducing dependence on LPG imports, reducing foreign exchange outflows, and reducing energy subsidy costs.

The head of the state-owned enterprises regulatory body, Doni Oscaria, said that Pertagas has the ability to help the government reduce energy subsidies and foreign exchange spending on LPG imports, according to the Indonesian news agency Antara.

In a statement received by Antara Agency in Jakarta on Wednesday, Oscaria explained that expanding the gas connections network would make optimal use of local gas supplies and help Indonesia enhance its energy self-sufficiency.

He also stressed the need for a more integrated gas network to meet the needs of citizens, while improving the efficiency of government spending.

Chinese factory activity returned to expansion in September, coinciding with accelerating growth in the services sector, in indications of improved momentum in the world's second-largest economy, supported by waning weather disturbances and demand related to artificial intelligence. However, the continued weakness in consumption and investment and the real estate crisis reveal that the recovery is still unbalanced, and reinforce expectations for continued government support.

The official purchasing managers' index for the industrial sector rose to 50.1 points in September, from 49.8 points in August, ending two consecutive months of contraction, according to the National Bureau of Statistics. The reading was in line with the expectations of a Reuters poll. A reading above 50 points indicates growth in activity, while a reading below it means contraction.

Details showed an improvement in demand and production, as the new orders sub-index reached 50.5 points, while the production index recorded 51.7 points.

Hao Zhu, an economist at Guotai Haitong Securities, said that China's financial push appears to have begun to gain momentum, and that September data indicates that the economy has moved to a higher pace, but he considered that the most important factor is the ability of real estate support measures to improve consumption by reducing household debt burdens.

A special survey reinforced indicators of industry improvement, as the Rating Dog Index for industrial purchasing managers rose to its highest level in five months at 52.1 points, from 51.5 points in August.

China continues to rely heavily on exports and industrial production to compensate for weak domestic demand and the prolonged real estate decline. The merchandise trade surplus is set to exceed $1 trillion for the second year in a row, but escalating trade frictions and geopolitical risks threaten the sustainability of this engine.

Beijing has intensified its measures to support the economy, and on Tuesday announced measures to direct cheaper financing to sectors including infrastructure and technology, along with expanding support for home buyers. This comes after the economy grew by 4.3 percent during the second quarter, which is the slowest pace in more than three years, while the government targets annual growth ranging between 4.5 and 5 percent.

Non-industrial activities also improved, as the official index, which includes services and construction, rose to 50.2 points in September, compared to 49 points in August. The special survey showed a stronger picture for the services sector, as the Rating Dog index for services rose to 51.6 points, the highest level in three months, compared to 51.4 points in the previous month. New business recorded the fastest growth since June, supported by improved demand and an acceleration in export orders.

Employment in services rose for the fifth month in a row, although the pace of hiring slowed to the lowest level in four months. On the other hand, the prices of products and services fell at the fastest pace since April 2022, despite the slowdown in the growth of input costs, indicating continued deflationary pressures and price competition.

The composite purchasing managers' index, which combines manufacturing and services, rose to 52.4 points from 52.1 points in August, confirming an improvement in activity in general.

Lin Song, chief economist for Greater China at ING, said that the K-shaped economic disparity has become clear this year. While resources continue to flow towards artificial intelligence, technological independence and industrial modernization, supporting lagging parts of the economy will remain necessary to achieve more balanced and sustainable growth.

September data reflects an economy regaining some momentum, but its strength remains concentrated in industry and strategic sectors. Continued improvement will depend on the ability of new policies to transfer the recovery to real estate, consumption and investment, and reduce the gap between strong production and weak domestic demand.

The ADP National Employment Report, issued on Wednesday, showed that the pace of job growth in the American private sector will accelerate during September 2026.

Employment in the private sector increased by 90,000 jobs during the month, after last August’s data was revised downwards, to show an increase of 36,000 jobs. Economists polled by Reuters had expected an increase of 70,000 jobs, compared to the increase of 38,000 jobs previously announced for August.

The ADP report is issued in collaboration with the Digital Economy Lab at Stanford University, and was published ahead of the release of the most anticipated and comprehensive employment report for September by the US Bureau of Labor Statistics on Friday.

The ADP report has long been an inaccurate indicator of the Bureau of Labor Statistics' estimates of private sector job growth. The Office reported on Tuesday that there were 1.01 job vacancies for every unemployed person last August, a slight decrease from the 1.06 rate recorded last July, while economists believe that the labor market is characterized by stability.

The Bureau of Labor Statistics is likely to announce an increase of 85,000 jobs in the private sector during September 2026, after a jump of 127,000 jobs last August, according to a Reuters poll of the opinions of economists. Total non-farm payrolls are also expected to rise by 90,000 jobs, after an increase of 162,000 jobs in August.

The unemployment rate is expected to remain stable at 4.1 percent for the third month in a row, although there are risks that tend to rise. A survey conducted by the Conference Board for Economic Research on Tuesday showed a decline in consumers’ outlook on the labor market during September.