China’s economy weakened further in recent weeks, according to surveys released yesterday, signaling the need for more support as the government ratchets up stimulus.
The Caixin purchasing managers survey (PMS) showed new manufacturing orders fell at the fastest pace in two years in September.
“Operating conditions in China’s manufacturing sector deteriorated in September after improving during August,” the report said. “Furthermore, firms lowered their hiring and purchasing activity.”
An official survey released by the National Bureau of Statistics showed a less drastic decline but it marked a fifth straight month of contraction. The purchasing managers index was at 49.8 in September, up from a six-month low of 49.1 in August. The index is on a scale where figures above 50 indicate expansion.
The survey showed that factory output rose while new orders fell.
Chinese stock markets surged yesterday, reflecting enthusiasm over a barrage of policy measures announced last week, including lower interest rates and smaller down payment requirem
The downturn in the property sector has rippled throughout the world’s second-largest economy, hitting many other industries that depended on booming housing construction, such as appliance makers and manufacturers of building materials.
It has slowed China’s recovery from the massive disruptions of the COVID-19 pandemic, adding to pressures on Chinese consumers worried over pay cuts, job losses and weaker asset prices.
The economy expanded at a 4.7% pace in the last quarter, slightly below the government’s target for about 5%. ELAINE KURTENBACH, MDT/AP
