Fall in China’s manufacturing continues

The manufacturing activity in China has continued to fall for the second month, indicating that the world's second largest economy is still facing economic slowdown.

An index of China's manufacturing was recorded at 49.8 for September, according to the data released by the statistics bureau in Beijing. The Chinese government is expected to increase efforts to revive its economic growth in the country after recording two straight months of a fall in manufacturing sector.

The Chinese PMI, which was released by the statistics bureau and the nation's logistics federation, was released after similar measures from HSBC Holdings and Markit Economics showed eleventh straight month of contraction in the manufacturing activity.

Premier Wen Jiabao, who is set to hand over the power to a new president soon, is aiming to halt the fall in growth and avoid a growth rate below his target of 7.5 percent, which itself in the lowest since 1990. Some believe that eh slowing growth might convince the central bank to reduce reserve requirements.

Economic growth has also been under pressure due to threatened trade relations between China and Japan, which is the world's third largest economy. The two countries are locked in a bitter dispute over the sovereignty over the islands located in the East China Sea.