China's manufacturing juggernaut came to a shuddering halt last month, with output falling at the fastest rate since figures began to be recorded.

The purchasing managers’ index produced by the CSLA brokerage from a survey of 400 manufacturers gave 45.2 for October, its lowest since it was created in 2004, and a full 2.5 points down on September. The overall output index stood at 43.4, down from 46.7.

The CLSA report reflect Beijing’s own figures, released on Saturday, with the index falling to 44.6 last month from 51.2 in September. A reading of 50 is neutral. It confirms the delayed but strong reaction in China to the credit crisis. The country’s financial system has held up, largely insulated by government controls on the currency and the banking system, but it is being badly hit by the collapse in consumer confidence in its key export markets.

Daily Telegraph