China's manufacturing activity contracts for 5th straight month despite policy support
Manufacturing in China contracted for a fifth consecutive month in February, according to an official survey of factory managers
HONG KONG (AP) — Manufacturing in China contracted for a fifth consecutive month in February, according to an official survey of factory managers released Friday, reflecting persistent weakness in the economy ahead of annual legislative meetings where officials are expected to boost policy support.
The official purchasing managers index, or PMI, fell to 49.1 in February from 49.2 the month before. The PMI is on a scale up to 100 where 50 marks the cutoff between expansion and contraction.
The manufacturing PMI has fallen in ten of the past eleven months, rising only in September.
February’s reading comes in spite of Beijing’s recent measures to shore up the economy, including reducing a lending rate that benchmarks home loans and cutting banks’ reserve requirements to boost lending.
