China’s Factory Activity Contracts Further Amid Ongoing Covid Controls, Caixin PMI Shows

Activity in China’s manufacturing sector contracted for the second month in September, as Covid controls to tackle outbreaks across the country suppressed factory output and new orders, a Caixin-sponsored survey showed Friday.

The Caixin China General Manufacturing Purchasing Managers’ Index (PMI), which gives an independent snapshot of the country’s manufacturing sector, came in at 48.1 in September, down from 49.5 the previous month. A reading below 50 indicates a contraction in activity while a number above that signals an expansion.