China’s Falling PMI, Local Government Deficits Point to Failure of Fiscal Stimulus: Expert

Workers manufacture toys for overseas export in Lianyungang, Jiangsu Province, China, on Dec. 8, 2014. ChinaFotoPress via Getty Images

News Analysis

China’s Purchasing Managers’ Index (PMI), or factory activity, fell below the 50th percentile benchmark last month, signaling a contraction in the manufacturing sector. One China market observer pointed out that Beijing’s efforts to stimulate the economy through manufacturing are beginning to fail.