Preliminary manufacturing PMI marks seven straight months of contraction

The preliminary Caixin/Markit Manufacturing Purchasing Managers’ Index stood at 47 for September, down 0.3 from its August reading, under-performing against economists’ expectations of 47.5 and continuing a decline below the 50-point mark that delineates contraction from expansion, The Financial Times reported. The PMI was last above 50 in February, and the latest figure marked a six-and-a-half-year low for the manufacturing sector in China. “Fiscal expenditures surged in August, pointing to stronger government efforts on the fiscal policy front. Patience may be needed for policies designed to promote stabilization to demonstrate their effectiveness,” said He Fan, chief economist at Caixin Insight Group.