China’s manufacturing activity contracts for 5th straight month despite policy support
HONG KONG — Manufacturing in China contracted for a fifth consecutive month in February, according to an official survey of factory managers released Friday, reflecting persistent weakness in the economy ahead of annual legislative meetings where officials are expected to boost policy support. February’s reading comes in spite of Beijing’s recent measures to shore up the economy, including reducing a lending rate that benchmarks home loans and cutting banks’ reserve requirements to boost lending. “On this basis, the headline manufacturing reading remained unchanged at 50.0 and is in line with factory activity holding steady last month,” she said. As this year’s Lunar New Year holidays — a weeklong national holiday — also fall in February, the readings could also be skewed by this period as factories are typically inactive.
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