LONDON: Oil slipped on Monday after Chinese data showed a deepening slowdown in the world's biggest energy consumer, but prices were supported by hopes of global stimulus measures as central banks try to revive economic growth. Two major surveys showed China's factory sector had been hit by slowing new orders, suggesting the slowdown in the world's No. 2 oil user is continuing in the third quarter. The data meant a shaky start to the month for Brent, which rose nearly 2 percent on Friday. Trading was expected to be limited, with U.S. markets closed for the Labor Day holiday. Brent October futures were down 7 cents at $114.50 per barrel by 0750 GMT, steadying after jumping nearly $2 on Friday. U.S. crude futures eased 15 cents to $96.32. Both contracts rose more than 9 percent in August, driven by supply concerns and hopes for stimulus from the Federal Reserve. "The Chinese data is very gloomy and suggests that the world economy is slowing," said Carsten Fritsch, oil analyst at Commerzbank in Frankfurt. "But the market impact is rather limited as it raises hopes of more economic stimulus measures." China's official factory purchasing managers' index (PMI), one of the early indicators of the state of the economy, fell to a lower-than-expected 49.2 in August, the National Bureau of Statistics said on Saturday. It was the first time since November 2011 that the number had fallen below 50, which separates expansion from contraction, and followed last week's flash PMI for August, which hit a nine-month low. Together, the two manufacturing surveys could strengthen the case for further policy steps to bolster growth. DATA U.S. and European data this week could throw light on central bank plans for monetary policy. Traders are eyeing the European Central Bank's meeting on Thursday and U.S. non-farm payrolls data due on Friday. Although the minutes of the last meeting of Fed policymakers suggested the central bank was leaning towards further stimulus to boost the economy, a keenly awaited speech on Aug. 31 by Chairman Ben Bernanke offered no specifics. Hopes for easing remained intact as Bernanke said stagnation in the U.S. labour market was a "grave concern", leading investors to expect that unemployment data due on Friday may provide the Fed with a trigger. U.S. quantitative easing tends to be positive for commodities as it drives down the dollar and adds liquidity. An ECB meeting on Thursday will be monitored more closely as the magnitude of the euro zone's problem gives it the ability to derail markets across the globe.

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