China's manufacturing sector saw a decline in activity in September, according to a report by S&P Global on Friday. The Caixin Manufacturing Purchasing Managers' Index fell from 49.5 in August to 48.1 in September, staying in the contraction territory. The report contradicts official data, which recorded growth in the sector in September.
"In general, the pandemic situation is still severe and complex, and the negative impact of Covid controls on the economy is still pronounced. In September, supply and demand in the manufacturing industry both contracted, the job market was weak, logistics and transportation were slightly sluggish, cost of production and prices charged continued to decline, and purchases and inventories fell slightly. Market optimism also dwindled significantly due to concerns about the economic outlook," said Senior Economist at Caixin Insight Group Wang Zhe.
