HSBC Corp. Said today that its monthly purchasing managers' index fell to 49.6 on a 100-point scale on which numbers below 50 show activity contracting. A separate index by an industry group, the Chinese Federation of Logistics and Purchasing, and the National Bureau of Statistics edged up 0.2 points from February to 50.1.
Both surveys showed prices of industrial goods declined in February, a sign of weak demand.
Beijing has cut interest rates twice since November to spur economic growth that declined to 7.3 per cent in the final quarter of last year, fueling fears of a politically dangerous spike in job losses.