A key indicator of China’s manufacturing activity slumped to a 6-year low in August, an independent survey showed today, fuelling concerns of further deceleration in the world’s second-largest economy.
The preliminary reading of Caixin’s Purchasing Manager’s Index (PMI) came in at 47.1 this month, the worst since a reading of 44.8 in March 2009, according to Markit’s data. The index, which tracks activity in factories and workshops, is seen as a key barometer of the country’s economic health. A figure above 50 signals growth, while anything below indicates contraction.
There is still pressure on the front of maintaining growth rates. To realise the goal set for this year, the government needs to fine tune fiscal and monetary policies to ensure macroeconomic stability and speed up the structural reform
–He Fan, Economist, Caixin Insight Group
Today’s PMI data suggests growth momentum had weakened in the July-September period. We expect monetary policy easing to continue
–Nomura economists
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)