China power cuts bite: Factory output shrinks after 18 months

Goldman slashes its Q3 growth forecast to 0%, from 1.3% earlier

Activity in China’s vast factory sector contracted in September for the first time since the pandemic began, the latest sign of deceleration in the world’s second-largest economy.
 
The drop in the official manufacturing purchasing managers’ index below the 50-mark, which signals a decline in output, shows the damage a widespread electricity crunch is having on growth.
 
Goldman Sachs has lowered the year-on-year forecasts for China's economy to 4.8 per cent in the third quarter and 3.2 per cent in the fourth quarter of 2021 compared to 5.1 per cent and 4.1 per cent a year ago, respectively.