Activity in China’s manufacturing sector contracted at the fastest rate in 14 months in September as demand shrank and the labor market weakened, a Caixin-sponsored survey published Monday shows, reports Caixin. The Caixin China General Manufacturing Purchasing Managers’ Index (PMI), which gives an independent snapshot of the sector, came in at 49.3, down 1.1 points from August to hit the lowest level since July 2023. A reading above 50 indicates an expansion in activity, while a number below signals a contraction.
The Caixin PMI is one of the earliest available monthly indicators of activity in the world’s second-largest economy. Manufacturing accounted for 27% of China’s GDP in the first half of the year, according to government data.
The survey showed that growth in manufacturing supply slowed from August, while the gauge for demand fell to a two-year low, with investment products facing the sharpest decline. The contraction of external demand deepened, with the gauge recording its lowest level in 13 months.