CHINA's manufacturing levels continued to worsen as the manufacturing purchasing managers index (PMI) fell to 50.2, lower than projected in a Bloomberg survey of forecasters.
The service-sector component dropped 1.3 points to 52.1, the lowest level since mid-2016, while the construction component rose to 63.9, matching the December 2017 record high.
New orders for export, which gives an indication of demand, fell further into contraction territory, dropping to the lowest reading since early 2016.
A level of 50 marks the dividing line between expansion and contraction. Most sub-indexes in the data declined from September, indicating that the slowdown was widespread, said Bloomberg.
Domestic economic growth is slowing, sentiment has followed the stock market down, and while exports are still strong now, they are expected to slow as higher US tariffs kick in.
'Today's PMI confirms that China's economy is under strain and this is despite policy easing, export front-loading, a still-strong housing market and a relaxation of the anti-pollution campaign,' said Rob Subbaraman, head of emerging markets economics at Nomura Holdings in Singapore.
'We believe the worst is yet to come. Payback from export front-loading, continued deleveraging and a property market correction will lead to a sharper deceleration in the economy in the first quarter next year,' said Mr Subbaraman.
The service-sector component dropped 1.3 points to 52.1, the lowest level since mid-2016, while the construction component rose to 63.9, matching the December 2017 record high.
New orders for export, which gives an indication of demand, fell further into contraction territory, dropping to the lowest reading since early 2016.
A level of 50 marks the dividing line between expansion and contraction. Most sub-indexes in the data declined from September, indicating that the slowdown was widespread, said Bloomberg.
Domestic economic growth is slowing, sentiment has followed the stock market down, and while exports are still strong now, they are expected to slow as higher US tariffs kick in.
'Today's PMI confirms that China's economy is under strain and this is despite policy easing, export front-loading, a still-strong housing market and a relaxation of the anti-pollution campaign,' said Rob Subbaraman, head of emerging markets economics at Nomura Holdings in Singapore.
'We believe the worst is yet to come. Payback from export front-loading, continued deleveraging and a property market correction will lead to a sharper deceleration in the economy in the first quarter next year,' said Mr Subbaraman.