Chinese industrial activity remained subdued in September but has shown some signs of stabilising at a weak level, according to a widely watched survey published yesterday.
The HSBC flash China purchasing managers’ index, the earliest of the economy’s monthly indicators, inched up to 47.8 in September from 47.6 in August. But it was still below the 50 line, pointing to a contraction and reinforcing market expectations that the Chinese economy is on track to slow further in the third quarter from its 7.6 per cent growth rate of the second quarter, which was already the slowest pace in three years.
“China’s manufacturing growth is still slowing, but the pace of slowdown is stabilising. Manufacturing activities remain lacklustre, thanks to weak new business flows and a longer than expected destocking process,” said Qu Hongbin, an economist with HSBC.