Activity in China`s manufacturing sector shrank for the seventh month in a row in February and more sharply than expected, an official survey showed, suggesting the government will have to ramp up stimulus to avoid a deeper economic slowdown.
A key indicator of China's manufacturing activity slumped to a 77-month low in August, an independent survey showed today, fuelling concerns of further deceleration in the world's second-largest economy.
The Flash HSBC Purchasing Managers' Index rose to 50.1 from July's final reading of 47.7, which was the weakest in 11 months, though it barely passed the watershed 50 line which demarcates expansion of activities from contraction.
Asian markets were thrown a lifeline on Thursday when surprisingly strong data on China's huge manufacturing sector helped offset rising U.S. bond yields, lifting currencies and shares from deep early lows.
China's vast manufacturing sector picked up moderately in October, snapping a three-month contraction and underscoring the resilience of the world's second-largest economy backed by robust domestic demand.
China's manufacturing sector contracted for a third consecutive month in September, suggesting that the world's second-largest economy is not immune to global headwinds although few analysts expect a hard landing.