China’s sluggish factories spurring hotter stimulus calls

That loud sputtering sound emanating from China is increasing in volume as factory activity contracts for a fourth straight month.

China’s official manufacturing purchasing managers’ index (PMI) dropped to 49.1 in August from 49.4 in July. Since April 2023, this key barometer has been below the 50-mark separating expansion and contraction for all but three months.

It suggests that Beijing’s efforts to revive Asia’s biggest economy care gaining less traction than hoped.