China Caixin manufacturing PMI hits new low
China's factory activity shrank for the seventh consecutive month in September, hitting a six-and-a-half year low, BBC reports referring to a preliminary survey.
The Caixin/Markit manufacturing purchasing managers' index (PMI) fell to 47 in September, below forecasts of 47.5 and down from 47.3 in August.
A reading below 50 indicates contraction in the sector, while one above shows expansion.
Wednesday's data weighed on investor sentiment in Asia, with stock indices in Sydney and Seoul widening losses to more than 1 percent each in the morning trading session, according to CNBC. China stocks, however, trimmed losses to 0.9 percent, from an over 1-percent decline at the open.
"The principle reason for the weakening of manufacturing is tied to previous changes in factors related to external demand and prices," He Fan, chief economist at Caixin Insight Group, is quoted by CNBC.
"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," he added.
The final PMI will become known on October 1. ----0----