China’s factory activity slips as new export orders weaken
AgenciesChina’s factory activity contracted in October as new export orders softened, reversing the previous month’s rebound.The world’s second-biggest economy has been facing pres...
China's manufacturing sector slowed in October as export orders weakened, marking a reversal from the previous month's growth. The nation's second-largest economy has been under pressure from trading partners to rebalance trade as its trade surplus with many countries continues to expand. According to data released by the National Bureau of Statistics on Saturday, China's official manufacturing purchasing managers' index (PMI) dropped to 49.3 in October, down from 50.1 in September and 49.8 in August.
The PMI, based on a monthly survey of companies, indicates contraction when below 50 and expansion when above 50. Multiple key subindexes also showed contraction in October, with new export orders falling to 48.7 from 50.0 in September. The subindex on production declined to 49.8, compared to 51.7 in the previous month. Chinese companies have been exporting more goods in search of buyers during a period of declining domestic demand, primarily due to a prolonged downturn in the country's property sector.
However, an increasing number of China's trading partners are expressing concerns over growing trade deficits with China, arguing that the influx of cheaper Chinese goods has negatively impacted the competitiveness of their domestic industries.
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