China drags global manufacturing confidence lower in September

China's performance continued to worsen as it fell to a fresh low since March 2009. The 'flash' manufacturing PMI came in at a 78-month low of 47.0, led by a fall in the output sub-index to a six-and-a-half year low. New orders also fell to a multi-year low of 46.0 (from 46.6 in August), signaling weak demand-both domestic and overseas.

Likewise, global new orders tentatively eased to -0.62 (from -0.59), the lowest since May 2013, driven mainly by China. Global inventories rose for the first time in four months. Consequently, the forward-looking new orders less finished goods inventories declined in September to -0.59 (from -0.48).

"Our preliminary reading of the September Barclays global manufacturing confidence points towards a slowdown for the fourth consecutive month; our global index fell to -0.69 from -0.65 (final reading), as China's manufacturing confidence fell to a fresh low since March 2009", says Barclays. 

In the euro area, although manufacturing confidence dipped slightly in September, it remains largely resilient to global growth uncertainties. US manufacturing confidence, meanwhile, remained unchanged in September.