China’s manufacturing contracted at the fastest pace since March 2009, a private survey showed, indicating the slowdown in the world’s second-largest economy is deepening.
The purchasing managers’ index released today by HSBC Holdings Plc and Markit Economics had a final reading of 47.6 for August after a preliminary 47.8 provided Aug. 23. The gauge was at 49.3 in July. The dividing line between expansion and contraction is 50.
The report adds to evidence that China’s slowdown is extending into a seventh quarter after growth decelerated to a three-year low in the April-June period. A separate manufacturing purchasing managers index released Sept. 1 by the government showed the first contraction since November.
“China’s exporters are facing increasing difficulties amid stronger global headwinds,” Qu Hongbin, chief China economist for HSBC in Hong Kong, said in a statement today. “Beijing must step up policy easing to stabilize growth and foster job market conditions.”
--Zhou Xin. Editors: Scott Lanman, John Liu
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