Investing.com - China's Caixin PMI for February came in at 48, below the 48.3 expected and last month's level of 48.4, placing it in contraction for 12 straight months. A figure below 50 suggests contraction.
Payroll numbers were cut at fastest pace since the start of 2009, according to the Caixin number, while stocks of finished goods fell at quickest rate since September 2011.
"The Caixin China General Manufacturing PMI for February is 48, down 0.4 points from the previous month. The index readings for all key categories including output, new orders and employment signalled that conditions worsened, in line with signs that the economy's road to stability remains bumpy. The government needs to press ahead with reforms, while adopting moderate stimulus policies and strengthening support of the economy in other ways to prevent it from falling off a cliff," said He Fan, the chief economist of Caixin Insight Group.
Earlier in China, the semi-official manufacturing PMI for February fell to 49, weaker than the 49.3 expected and last month's 49.4 level, while the non-manufacturing PMI came in at 52.7, below the last reported at 53.5.
For the China Federation of Logistics and Purchasing manufacturing it was its weakest level since November 2011.
The CFLP said in an accompanying statement that production, new orders and amount of purchase fell sharply in February because of the week-long Chinese New
year holiday. Input prices for iron and steel and non-ferrous metal industries saw marked increases. If the recovery momentum becomes a trend, it will help to improve companies profitability and further boost production," said the CFLP.
The CFLP also noted a spike in the sub-index measuring business expectations, jumping to 57.9 in February from 44.4 in January, suggesting strong confidence by Chinese companies over the future outlook.