China’s manufacturing sector slowed in August.  The Chinese government’s official purchasing manager’s index, which measures the health of factory activity, fell for the first time in February.

China’s economy has been slowing for several years, but a sharp correction in the real estate markets in recent months has raised questions about a slump ahead.  Growth targets are not being met.  Beijing has been giving mini-sitmuli, including targeted lending in the agricultural sector and promises of more investment in clean energy, hospitals, environmental protection and public housing.

Measures to step up growth like infrastructure investment are expected.  The campaign to root out corruption is moving slowly.  A China analyst suggests that the anti-corruption campaign is a two-sided coin.  Chinese outsiders and foreigners need to see this effort, but it is difficult to inspire government employees to act quickly when they don’t have the usual incentives.