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Preliminary manufacturing PMI notes 7 straight months of shrinkage
THE preliminary Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) stood at 47 for September, down 0.3 from its August reading, under-performing against economists' expectations of 47.5.
This continues the decline below the 50-point contraction line, reports London's Financial Times, adding that that last time it scored above 50 was in February with the latest figure marking a six-and-a-half-year low for China's manufacturing sector.
"Fiscal expenditures surged in August, pointing to stronger government efforts on the fiscal policy front," said He Fan, chief economist at Caixin Insight Group.
"Patience may be needed for policies designed to promote stabilisation to demonstrate their effectiveness," he said
Said Citi research's Minggao Shen in Hong Kong: "Policy supports so far are not enough to offset the downward growth momentum led by overcapacity, overleveraging and policy paralysis."
Mr Minggao said retail sales have shown signs of stabilisation in recent months, but exports, property investment and fixed asset investment have contracted.
"As we argued, growth stabilisation in the near-term should rely on the old economy which is largely in recession. We continue to expect official GDP growth may decelerate to 6.7 per cent year on year in the third quarter with a mild rebound to 6.8 per cent in 4Q," Mr Minggao said.
This continues the decline below the 50-point contraction line, reports London's Financial Times, adding that that last time it scored above 50 was in February with the latest figure marking a six-and-a-half-year low for China's manufacturing sector.
"Fiscal expenditures surged in August, pointing to stronger government efforts on the fiscal policy front," said He Fan, chief economist at Caixin Insight Group.
"Patience may be needed for policies designed to promote stabilisation to demonstrate their effectiveness," he said
Said Citi research's Minggao Shen in Hong Kong: "Policy supports so far are not enough to offset the downward growth momentum led by overcapacity, overleveraging and policy paralysis."
Mr Minggao said retail sales have shown signs of stabilisation in recent months, but exports, property investment and fixed asset investment have contracted.
"As we argued, growth stabilisation in the near-term should rely on the old economy which is largely in recession. We continue to expect official GDP growth may decelerate to 6.7 per cent year on year in the third quarter with a mild rebound to 6.8 per cent in 4Q," Mr Minggao said.
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