China's PMI reports show slowdown deepening as services slip

China's factory gauge extended its stretch of deteriorating conditions to a record seven months while a measure of services fell to the weakest in seven years, underscoring the challenge for policy makers as they seek to cut overcapacity in manufacturing without derailing growth.

The manufacturing purchasing managers index dropped to 49 in February, missing the median estimate of 49.4 in a Bloomberg News survey of economists. It hasn't been weaker since January 2009. Numbers below 50 indicate conditions worsened. In a sign China's slowdown is spreading, the non-manufacturing PMI - which has been outperforming the factory measure - fell to the lowest level since December 2008. The central bank late Monday stepped up efforts to cushion demand amid plunging stock prices and a weakening currency, freeing up the amount of cash the nation's banks can lend.

The National People's Congress will gather Saturday, where plans for 2016 and the next five years will be outlined.