Economics
China’s Growth Risks Multiply as Manufacturing Activity Shrinks
- Manufacturing PMI drops below 50 as energy crunch hits output
- Beijing shows signs it’s willing to tolerate sharper slowdown
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Activity in China’s vast factory sector contracted in September for the first time since the pandemic began, the latest sign of deceleration in the world’s second-largest economy.
The drop in the official manufacturing purchasing managers’ index below the 50-mark, which signals a decline in output, shows the damage a widespread electricity crunch is having on growth.