Manufacturing Contraction Continued in September
Created: 2012-10-01 11:53 EST
A manufacturing slump continues in China, with official data showing a second month of contraction.
The Purchasing Managers’ Index stood at 49.8 points for September, the National Bureau of Statistics announced on Monday. This is up slightly from 49.2 points in August. Anything below the 50 point mark on the 100 point scale means contraction.
Monday’s figure suggests a slight bounce back in manufacturing, but Chinese authorities, including leader Hu Jintao, had earlier warned against further economic deterioration before growth improves.
Market watchers are expecting Chinese regulators to introduce further measures to boost the economy. Although so far, this year’s new measures, including a double rate cut, have had little result.
China’s economic growth hit a three year low during the second quarter, hitting 7.6%. But analysts have cautioned against relying on official data as it are can be prone to manipulation and does not reflect the true state of the Chinese economy.
The official GDP figures for the quarter ending in September are expected on October 18th.