A trend is emerging.
From the South China Morning Post, September 30:
China’s factory activity contracts again, prompting calls for policy support
Manufacturing purchasing managers’ index hits 49.8 in September, staying in contraction range for sixth consecutive month
China’s official gauge of manufacturing activity has stayed in contraction for a sixth consecutive month in September, providing more fuel for calls to step up government support amid persistent external headwinds and weak domestic demand.
The manufacturing purchasing managers’ index (PMI) stood at 49.8 in September according to a Tuesday release from the National Bureau of Statistics, higher than August’s reading of 49.4 but falling short of a 50.1 projection from a survey of economists by financial data provider Wind.
The monthly index compiles survey data given by supply chain managers from a variety of sectors. A reading above 50 suggests economic expansion, while one below 50 indicates contraction.
Zhang Zhiwei, chief economist at Pinpoint Asset Management, said the figure shows economic momentum is “weak” in the third quarter.
However, he added, the October meeting of the Communist Party’s Politburo “will shed light on the policy reaction to the slowdown.”
Considering the relatively strong economic performance recorded in the first half of 2025, Zhang said, Beijing may tolerate some deceleration in the second half – as long as it does not jeopardise the annual gross domestic product growth target of “around 5 per cent”.
The new orders sub-index – a measure of manufacturing demand – came in at 49.7 in September, compared to 49.5 a month earlier.
China’s non-manufacturing PMI, which measures activity in the construction and services sectors, dropped to 50 from 50.3 last month, the bureau’s data showed....
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Mot seeing the knee-jerk "they have to stimulate" reaction in the equity markets that we have see following previous contractive reports.
