A gauge of Chinese manufacturing activity unexpectedly contracted last month, a worrying sign for the world’s second-biggest economy as it looks to combat a litany of challenges.
The private survey focused on export-oriented companies, suggesting potential vulnerability as Beijing looks to ward off the consequences of Washington’s trade restrictions. It also confirmed the persistent struggles facing the country, including moribund growth, a mountain of debt, high levels of youth unemployment, and a still-unfolding real estate crisis.
Two official surveys released over the weekend also showed contraction across various sectors of the economy. “The sharp slowdown in momentum is worrying,” a Commerzbank economist warned in a note to clients.
