China’s manufacturing activity expanded at a slower pace in October, with the RatingDog PMI easing to 50.6 from 51.2, missing expectations of 50.9. The moderation reflects weaker demand momentum and growing headwinds from global trade tensions, which weighed on both output and new export orders.
According to RatingDog founder Yao Yu, both demand and production expansion softened. Export orders fell “sharply into contraction territory” as heightened trade uncertainty curbed overseas demand. Production growth also cooled, though sub-indices remained in expansion territory. Purchasing activity “slowed significantly”, signaling greater caution among manufacturers heading into year-end.
Price pressures was a drag on profits, as raw material costs rose while finished goods prices fell. Exporters reduced selling prices for the first time since April to stay competitive amid fragile external demand. Still, the survey offered a bright spot: the employment index returned to expansion for the first time since March, reaching its highest level since August 2023.
