- New export orders fell at the fastest rate in 42 months
- China still likely to achieve annual growth target of 7.5%
- Some expect more stimulus measures during upcoming public holiday
China's manufacturing activity shrank for an 11th straight month in September, HSBC said Saturday, adding to pressure on Beijing to provide fresh stimulus to boost the world's second-largest economy.
The final reading of the purchasing mangers' index (PMI) released by the British banking giant hit 47.9 this month, a mild improvement from a final reading of 47.6 in August, HSBC said in a statement.
The index is closely watched as it gauges nationwide manufacturing activity, a key sector of the Chinese economy. A reading below 50 indicates a contraction in manufacturing, while a reading above 50 indicates expansion.
China's official PMI figure for August released earlier this month hit a nine-month low of 49.2.
Final Reading an Improvement Over Preliminary
The final HSBC reading was slightly above the preliminary PMI of 47.8, announced on Sept. 20, and may ease concerns over China's sharp slowdown.
The latest figure marked nearly a year of continuous contraction since November, underscoring broader economic weakness and shrinking demand in key overseas markets.
New export orders fell at the fastest rate in 42 months, HSBC said, indicating that economic weakness in major export markets such as the United States and Europe were continuing to weigh on the Chinese economy.
Chinese Manufacturing Probably Hit Low Point
Qu Hongbin, HSBC's Hong Kong-based chief economist for China, said that manufacturing was probably hitting its low point but that Beijing still needed to introduce further stimulus to help the economy.
"Chinese manufacturing growth is likely to be bottoming out," he said in a statement.
