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Xinyi Wu

China’s manufacturing activity remained in contraction for a seventh consecutive month in October, official data shows, as the world’s second-largest economy continues to battle persistent external headwinds and soft domestic demand.
The manufacturing purchasing managers’ index (PMI) stood at 49 in October, down from 49.8 the previous month, according to data released on Friday by the National Bureau of Statistics.
The reading fell short of the 50 projected by economists polled by financial data provider Wind.
The monthly index compiles survey data given by supply chain managers from a variety of sectors. A reading above 50 suggests economic expansion, while one below 50 indicates contraction.
“Affected by factors such as the early release of some demand before the National Day holiday and a more complex international environment, manufacturing activity in October slowed down compared to the previous month,” said Huo Lihui, chief statistician of the bureau’s Service Survey Centre, noting that both demand and supply have slowed.
The new orders sub-index – a measure of manufacturing demand – came in at 48.8 in October, down from 49.7 a month earlier. Meanwhile, the production sub-index dropped to 49.7 from 51.9 in September.
Zhang Zhiwei, chief economist at Pinpoint Asset Management, noted that China’s economic momentum has weakened since the middle of the year.
“The property sector slowdown continues to put pressure on domestic demand. The fiscal policy stance has not changed significantly to offset such downward pressure,” he said.
“As the trade negotiation went successfully yesterday, I think the macro policy in China will stay unchanged for the rest of this year. I expect fiscal policy will become more proactive in Q1 next year.”


China’s vast manufacturing sector remains a vital source of growth for the country’s economy, and is set to maintain its central role in Beijing’s 15th five-year plan, which outlines the Chinese leadership’s policy priorities for the rest of the decade.
But China’s factories have been weighed down this year by weak domestic demand, vicious price wars and a prolonged trade war with the United States – though output has remained more resilient than many observers predicted.
China’s exports have so far held firm in the face of American tariffs, with front-loading and strong growth in shipments to alternative markets helping to offset a decline in demand from the US.
Domestic demand has remained soft despite government efforts to boost consumption, with the eight-day “golden week” public holiday in early October only bringing a modest year-on-year uptick in consumer spending.
However, there are signs that Beijing’s campaign against price wars and industrial overcapacity is starting to ease pressure on manufacturers. Industrial profits grew 21.6 per cent in September, the fastest pace in nearly two years, the statistics bureau said in a separate release on Monday.
And a meeting between President Xi Jinping and US President Donald Trump in Busan, South Korea, on Thursday set a tone of de-escalation between the world’s two largest economies.
The US announced that it would lower tariffs on Chinese imports, while China’s Ministry of Commerce stated that its tightened export controls on rare earths would be suspended for one year.
China’s non-manufacturing PMI, which measures activity in the construction and services sectors, rose to 50.1 in October from 50 last month, the bureau’s data showed.
China’s official composite PMI – which tracks both the manufacturing and services sectors – was 50 in October, compared with 50.6 in September.
Additional reporting by Kandy Wong


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China’s official purchasing managers’ index fell to 49 in October, missing estimates and staying in contractionary range another month


China’s official purchasing managers’ index fell to 49 in October, missing estimates and staying in contractionary range another month.


China’s factory activity contracts for seventh month amid trade war uncertainty

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}China’s official purchasing managers’ index fell to 49 in October, missing estimates and staying in contractionary range another month

China’s official purchasing managers’ index fell to 49 in October, missing estimates and staying in contractionary range another month