Manufacturing slump persists as China boosts stimulus
China’s economy has shown further signs of weakness, prompting calls for additional government support amid increasing stimulus measures. The Caixin purchasing managers survey indicated that new manufacturing orders fell at the fastest rate in two years during September, suggesting a deterioration in operating conditions. While an official survey reported a less severe decline, it marked the fifth consecutive month of contraction, with a purchasing managers index of 49.8, slightly improving from August’s six-month low. Despite this, Chinese stock markets reacted positively to recent policy measures, including lower interest rates and eased mortgage requirements, with significant gains in Shenzhen and Shanghai indexes. The economy’s growth rate of 4.7% in the last quarter fell short of the government’s target of around 5%.