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updated: 10/1/2012 7:06 AM

Survey shows China manufacturing contracting

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  • Chinese residents take photos of a smashed Japanese brand car during an anti-Japan protest in Xi'an in northwest China's Shaanxi province as protests against Japan for its control of disputed islands spread across more than a dozen cities in China and turned violent.

      Chinese residents take photos of a smashed Japanese brand car during an anti-Japan protest in Xi'an in northwest China's Shaanxi province as protests against Japan for its control of disputed islands spread across more than a dozen cities in China and turned violent.

 
Associated Press

BEIJING -- A new survey shows Chinese manufacturing contracted again in September in a sign of enduring economic weakness.

An industry group, the China Federation of Logistics & Purchasing, said its monthly purchasing managers' index stood at 49.8 points on a 100-point scale on which numbers below 50 indicate a contraction. That was up 0.6 points from August's numbers.

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Some analysts have suggested China's deepest economic downturn since the 2008 global crisis is stabilizing but officials including President Hu Jintao have warned conditions might deteriorate further before growth rebounds.

China's economic growth fell to a three-year low of 7.6 percent in the quarter ending in June. That is strong by Western standards but has hurt Chinese manufacturers and construction companies that depend on high growth.

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