Any number below 50 indicates a deceleration in the manufacturing sector.

New orders fell more sharply month-on-month in September than between July and August, and manufacturers continued to shed workers.

If the Caixin manufacturing purchasing managers’ index is hovering above 50 then only one can say China’s manufacturing industry is expanding, but it’s much below it, say economists.

The final PMI will become known on October 1.

The data showed considerable headwinds to growth from soft global demand and the index’s focus on export-oriented sectors had been the biggest reason behind its decline in recent months, given the heavy export-related component in the overall order book, according to Qu Hongbin, chief China economist at HSBC.

A private Chinese manufacturing gauge fell to the lowest in 6 1/2 years, underscoring challenges facing the nation’s factories as the economy’s old growth engines splutter.

Sparking the declines overnight was another set disappointing data out of China, where the Caixin manufacturing PMI hit 47, its lowest level since just after the financial crash of 2009. Shares in Hong Kong followed the mainland lower, with the Hang Seng falling 3% to 21,146.31.

The prospects of weaker demand come as the oversupplied global oil market is already troubled by expectations Iranian crude will return within months if Tehran is found to have complied with a deal to curb its nuclear ambitions.

The reading comes as Xi seeks to reassure U.S. business leaders about China’s economy during his seven-day visit to the United States, pledging Tuesday at a welcoming dinner in downtown Seattle to push ahead with economic reforms.

China insists it will meet its 7% growth target, which would be the country’s slowest since 1990.

He said in a note on Wednesday that China still faced “structural drags on growth” but that “with most of the key leading indicators such as fiscal spending and credit growth now looking supportive, we continue to expect a cyclical recovery in economic activity”.

Caixin’s He said fiscal expenditures surged in August, suggesting the government had stepped up its support, but the effects would take time to kick in. Industrial output is expected to fall 4.8 per cent in August from a year earlier, the Reuters poll said, better than the 6.1 per cent drop in the preceding month. “Patience may be needed for policies designed to promote stabilization to demonstrate their effectiveness”.