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STORY: China’s factories still aren’t running at full tilt, and the service sector doesn’t look any better.

That was the gloomy picture painted by new data out Monday.

The closely watched Purchasing Mangers’ Index for manufacturers did nudge up a little - to 49.8 in September.

But that still left it below the 50-point line that indicated falling activity.

It’s now been below that level for five straight months.

The numbers come just days after Beijing launched its biggest stimulus package since the pandemic.

That included interest rate cuts and help for mortgage borrowers.

Further measures are expected to include special bonds to fund increased subsidies for consumer goods and business equipment.

Those moves continue to boost stocks, with China's blue-chip index up around 8% on Monday.

That put the country's equity markets on track for their best month in nearly a decade.

Even so, Monday’s figures also showed the service sector slipping into contraction for the first time since December.

Put it together, and the data may suggest even more economic support is needed, if China is to hit its growth target of around 5% for the year.

The construction sector was, however, one relative bright spot on Monday.

Its PMI number hit 50.7, well above the key 50 mark.

Last week, top leaders at China’s Politburo meeting called for more efforts to boost the housing market.

Reuters has reported that megacities Shanghai and Shenzhen will also take action, lifting all restrictions on home buying.