China factory growth stalls in September

BEIJING, Sept Oct 03 (Reuters): Growth in China's factory sector stalled in September after 15 months of expansion, with export orders falling the fastest in over two years, a private survey showed on Sunday, suggesting US tariffs are starting to inflict a heavier toll on the Chinese economy.

A separate, official survey confirmed a further weakening in Chinese manufacturing last month, with domestic and export demand also softening, though its headline reading still pointed to some growth.

Taken together, the business activity gauges - the first major readings on China's economy for September - confirm consensus views that the world's second-largest economy is continuing to cool, which is likely to prompt Chinese policymakers to roll out more growth support measures in coming months.

The Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) for September fell more than expected to 50.0 from 50.6 in August. Economists polled by Reuters had forecast a reading of 50.5 on average.

The neutral 50-mark divides expansion from contraction on a monthly basis.