China’s manufacturing slows in September but downturn might be stabilizing

A business survey shows China’s manufacturing contracted again in September but suggests the slowdown might be stabilizing.

 HSBC Corp. said Thursday a preliminary version of its purchasing managers’ index, based on a survey of some 420 companies, stood at 47.8 on a 100-point scale on which numbers below 50 indicate a contraction. That was up slightly from August’s 47.6.

“China’s manufacturing growth is still slowing, but the pace of slowdown is stabilizing,” said HSBC economist Hongbin Qu in a statement with the report.

Analysts expect a rebound in China’s economic growth late this year or in early 2013 following two interest rate cuts and higher government spending aimed at reversing the country’s deepest slump since the 2008 global crisis.