China’s factory activity contracts again, prompting calls for policy support
Manufacturing purchasing managers’ index hits 49.8 in September, staying in contraction range for sixth consecutive month
The manufacturing purchasing managers’ index (PMI) stood at 49.8 in September according to a Tuesday release from the National Bureau of Statistics, higher than August’s reading of 49.4 but falling short of a 50.1 projection from a survey of economists by financial data provider Wind.
The monthly index compiles survey data given by supply chain managers from a variety of sectors. A reading above 50 suggests economic expansion, while one below 50 indicates contraction.
Zhang Zhiwei, chief economist at Pinpoint Asset Management, said the figure shows economic momentum is “weak” in the third quarter.
However, he added, the October meeting of the Communist Party’s Politburo “will shed light on the policy reaction to the slowdown.”