(RTTNews) - The manufacturing sector in China fell into contraction territory in September, the latest survey from Caixin revealed on Monday with a manufacturing PMI score of 49.3.
That's down from 50.4 in August, and it slips beneath the boom-or-bust line of 50 that separates expansion from contraction.
Incoming new orders for Chinese manufactured goods declined at the fastest pace since September 2022, attributed to falling underlying demand, heightening competition and subdued market conditions, according to panelists. This included export orders, with softening economic conditions abroad negatively affecting foreign demand. Firms in the investment goods sector recorded the fastest fall in overall new work.
The survey also showed that the services PMI came in at 50.3, down from 51.6 in August.
New business inflows for services firms in China expanded for a twenty first straight month in September as underlying demand conditions improved. New product launches were often mentioned as reasons supporting higher demand as well. That said, the rate of expansion decelerated to the slowest in nearly a year.
