China Economic Activity Slows as Manufacturing PMI Drops to 49.3
China's manufacturing, services, and construction sectors contracted in October, with factory activity falling at the fastest pace in three months.
Economic activity in China slowed sharply in October, with the manufacturing, services, and construction sectors all losing momentum. The National Bureau of Statistics reported that the official manufacturing purchasing managers index (PMI) fell to 49.3, marking the fastest pace of contraction in three months. This figure dropped from 50.1 in September and missed economist forecasts of 49.8 and 50.0.
The manufacturing decline was driven by soft demand, specifically drops in production, total new orders, and new export orders. Simultaneously, the nonmanufacturing PMI, which tracks service and construction activity, declined to 49.7 from 50.2 in September. Within this broader category, service activity fell to 50.0, while construction activity saw a significant drop to 48.0 from 50.3.
