ese manufacturing fell for the second straight month in September, fuelling fears that China is continuing to struggle in the face of low demand from the US and Europe.
The Purchasing Managers’ Index rose modestly to 49.8 in September from 49.2 in August, the lowest reading since November 2011. A reading below 50 indicates contraction.
Two cuts to interest rates, an easing of compulsory bank reserve requirements that freed about 1.2 trillion yuan (£117.bn) for lending and approval of more than $150bn worth of infrastructure projects have so far failed to arrest the decline in China's overall growth.
Analysts at Barclays this morning said: “Another below-50 print suggests that industrial activity remains weak on soft demand.”