China Factory Activity Falls for 6th Month

thecekodok


China's manufacturing activity contracted for the sixth straight month in September, according to an official survey that put the PMI at 49.8.


While slightly up from August's 49.4, the data still showed the sector was still below growth.


The prolonged contraction reflected weak domestic demand and uncertainty over trade talks with the United States, making it uncertain for manufacturers to boost output without clear government stimulus.


However, private sector surveys showed a more positive recovery, with the private PMI recording the fastest growth since March, supported by a rise in new orders and a surge in exports.


The discrepancy between the official and private surveys reflects the pressure on large companies that rely on the domestic market compared to export-oriented private firms.


Authorities are expected to consider a range of fiscal and monetary stimulus measures to rebuild growth momentum, while investors and manufacturers await clear signals of future support.