BEIJING, Sep 30 (Businesshala) – China’s factory activity fell unexpectedly in September as high raw material prices and power cuts put pressure on manufacturers in the world’s second-largest economy.
The official manufacturing procurement manager’s index (PMI) stood at 49.6 in September versus 50.1 in August, National Bureau of Statistics (NBS) data showed on Thursday, slipping into contraction for the first time since February 2020.
Analysts in a Businesshala poll had expected the index to hold steady at 50.1, unchanged from the previous month.
The 50-point mark separates growth from contraction.
China’s economy recovered rapidly from a pandemic-induced slowdown last year, but momentum has weakened in recent months, with the vast manufacturing sector facing the impact of the COVID-19 outbreak, increased costs, production bottlenecks and more recently electricity rationing. is facing. (Reporting by Ryan Wu and Gabriel Crossley; Editing by Tom Hogue)