China’s official manufacturing PMI fell from 49.8 to 49.0 in October, missing expectations of 49.7 and marking the lowest reading in six months. The sector has now been in contraction since April. The new orders index dropped to 48.8 from 49.7, while the production sub-index declined sharply to 49.7 from 51.9, pointing to a broad slowdown in both output and demand.
NBS chief statistician Huo Lihui attributed the weaker reading to “the early release of some demand before the National Day holiday” and a “more complex international environment” that continues to weigh on activity.
Outside the factory sector, Non-Manufacturing PMI edged up slightly to 50.1 from 50.0, though it also missed forecasts of 50.2. As a result, the Composite PMI, which combines manufacturing and services, slipped to 50.0 from 50.6.
