News Summary: China manufacturing at 9-month low

AP News
Posted: Aug 23, 2012 11:21 AM

CHUGGING ALONG: China manufacturing activity fell to a nine-month low in August, stepping up pressure on Beijing for more interest rate cuts and stimulus measures.

KEEPING IT MOVING: Beijing has cut rates twice since June 1 and is pumping money into the economy through higher spending on public works construction. But authorities are moving cautiously.

EASING UP ON THE BRAKES: The slowdown is due in part to government lending and investment curbs in 2010-11 to cool an overheated economy. Authorities reversed course late last year after a plunge in export demand but have retained controls on construction and home purchases.