“As China has rolled out a slew of pro-growth measures in the past months, China’s domestic demand may have stabilized”.
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The preliminary figure for its Purchasing Managers’ Index (PMI) came in at 47.0, down from August and missing expectations.
A survey has found that China’s manufacturing slump has deepened as activity in the vital sector has fallen to its lowest level in 6 – 1/2 years.
Economic data out of China has been dismal in recent months, pointing to an overall economic slowdown.
But persistently weak factory activity and cooling investment could spark fears that the downdraft is now too intense for services alone to offset, putting the economy at risk of a more profound slowdown that could jeopardise the fragile global recovery.
A leading private measure shows Chinese manufacturing contracting at its fastest pace since the height of the global financial crisis. The benchmark two-year U.S. Treasury yield fell to 0.67 percent, nearing a two-week low. The U.S. dollar against currencies in emerging markets mostly rose.
Investors will get more manufacturing data on October 1, when Caixin and the Chinese government will release final PMI readings for the month of September.
Caixin chief economist He Fan said patience would be needed to see the results of fiscal stimulus from Beijing, which is designed to promote stability in the sector.
A pedestrian looks at an electronic board showing the stock market indices of various countries outside a brokerage in Tokyo, Japan, August 27, 2015.
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Chinese President Xi Jinping added his voice on Tuesday to officials trying to reassure the world that the government was still committed to reforms following its massive intervention to rescue the stock markets and boost growth.
