The official manufacturing purchasing managers’ index was 49.8, versus 49.1 in August, the National Bureau of Statistics said Monday. The median forecast of economists surveyed by Bloomberg was 49.4. The reading has come below the 50-mark separating growth from contraction during all but three months since April 2023.
The non-manufacturing measure of activity in construction and services fell to 50 from 50.3 last month, the statistics office said. That compares with a forecast of 50.4.
The PMI surveys capture the economy’s momentum before Chinese officials announced a broad package of stimulus measures aimed at reviving growth. The central bank cut key interest rates and freed up cash for banks to boost lending, while the elite Politburo pledged to support fiscal spending and stabilize the beleaguered property sector.
The unusual pace and intensity of the efforts reflected policymakers’ urgency and boosted investor sentiment, with Chinese stocks capping their biggest weekly rally since 2008 on Friday.
The pessimism was palpable before the stimulus announcements, with Chinese consumer confidence falling in August to the lowest level since November 2022, according to data released Sunday.