Economics
China Factory Gauge Shrinks to 3-Year Low
- China rate cuts since November are struggling to find traction
- French manufacturing also shrinks, as Germany beats forecasts
China Interventions Can't Hold Off PMI Contraction
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China’s official factory gauge fell to the lowest level in three years as monetary easing failed to revive old growth drivers, while measures for the euro area signaled a divergence in the German and French economies.
China’s official Purchasing Managers’ Index was 49.7 for August, matching the median estimate in a Bloomberg survey and down from 50 in July. Numbers below 50 indicate contraction, with small, medium and large enterprises all below that level last month. A similar gauge for France fell to 48.3 from 49.6, while Germany’s reading rose more than estimated to 53.3, according to data published by Markit Economics on Tuesday.