Chinese factory activity slips amid strong tech show

China's manufacturing activity slowed in October, as indicated by a decline in the Purchasing Managers' Index to 49.3, according to official data released on Saturday. The National Bureau of Statistics reported a modest decrease of 0.8 percentage points compared to September. Chief statistician Huo Lihui attributed the dip to forward-looking demand ahead of the National Day holiday and a complex global landscape.

The production subindex fell by 1.9 points to 49.8, while the new-orders subindex declined by 1.1 points to 49.4, both reflecting moderating supply and demand. Despite these challenges, emerging industries maintained their growth momentum, with high-tech and equipment manufacturing sectors expanding. High-tech manufacturing had a PMI of 51.3, while equipment manufacturing stood at 50.6, both above the 50-point mark separating expansion from contraction.

In advanced industries such as railway, shipbuilding, aerospace, computer, communications, and electronic equipment manufacturing, the production and new-orders subindexes remained above 53, indicating robust supply and demand. Large manufacturers continued to expand, with a PMI of 50.2, slightly down from the previous month. Medium-sized and small enterprises showed a PMI of 48.4, while small enterprises had a PMI of 47.5.

Both major raw material purchasing prices and factory-gate prices remained in expansionary territory, although their growth rate eased. The purchasing price subindex fell by four points to 56.8, while the factory-gate price subindex declined by 2.3 points to 51.7, partly due to recent drops in nonferrous metals and other commodity prices.