The 60th anniversary of the founding of the People’s Republic of China, the People’s Daily opined on Friday, is “worthy of a crashing celebration”. But data that came out last week was more of a crashing disappointment. September’s purchasing managers’ index, a gauge of manufacturing activity, marked the seventh month in a row above 50, signalling expansion. Yet the readings were weaker than usual for September. Six components rose but five fell; in July and August, when the stimulus was kicking in, the split was nine to two.
Every politician frets about what happens when the state stops spending. At about 15 per cent of gross domestic product, China’s overall package is bigger than most G20 peers. But once Beijing takes down the bunting, it will be as nervous as anywhere else.
