China factory activity contraction worsens
24 September 2015,Nirapad News: China’s factory activity contracted at the fastest pace for six and a half years in September, according to a preliminary survey of the vast sector.
The Caixin/Markit manufacturing purchasing managers’ index (PMI) fell to 47 in September, below forecasts of 47.5 and down from 47.3 in August, reports the BBC.
A reading below 50 indicates contraction in the sector, while one above shows expansion.
The disappointing data will stoke concerns about slowing growth in China.
The survey comes just a day after the Asian Development Bank lowered its growth forecast for China this year to 6.8% – below the government’s target of about 7%.
Last week, the US Federal Reserve also held off raising interest rates for the first time in nearly a decade in part due to concerns over the impact of the slowdown in China.
The closely watched private survey focuses on smaller and medium-sized firms, while the official one is based on larger firms.
Acceleration in shrinking factory production, export orders and employment were the key factors behind the weaker-than-expected reading.