MANUFACTURING in China contracted for the 11th month in a row in September, according to a private sector survey of factory managers that indicated the world’s second-largest economy remains on track for a seventh quarter of slowing growth.

The HSBC Flash China manufacturing purchasing managers’ index (PMI) showed activity stabilized in September after hitting a nine-month low in August, with the headline reading ticking up to 47.8 from 47.6 last month.

But while the economy may not have worsened, there were few signs of a fast turnaround. Rather, the PMI, which provides the first glimpse of September’s conditions for Chinese industry, pointed to a month in which a slide was halted but not reversed.

There was a broad steadying across the sub-indices in the survey, released Thursday, with the exception of output, which dipped to its lowest level in 10 months. An index reading below 50 represents contraction and above that level expansion.

China unveiled a series of measures last week to help stabilize export growth, including faster payment of export tax rebates and boosting loans to exporters.

That was on top of a series of approvals for infrastructure projects worth more than US$150 billion, two earlier cuts to interest rates, the easing of bank reserve requirements that freed about 1.2 trillion yuan for lending and a steady series of liquidity injections into money markets. (SD-Agencies)