Chinese factories were quieter again in September as demand softened at home and abroad. <br /><br /> Several surveys have shown strains on smaller and medium-sized manufacturing and service companies which are the driving force behind China’s economy.<br /><br /> Activity at larger state factories shrank for a second straight month, though at a slower pace than in August.<br /><br /> Smaller manufacturers reported the worst conditions in six and a half years.<br /><br /> The weak readings are fueling fears that the Chinese economy may be cooling more rapidly than previously thought, and that growth may slip below 7 percent in the third quarter.
