The National Bureau of Statistics of China (NBS) said its manufacturing gauge fell below the 50-point expansion threshold in October as orders weakened, alongside a separate contraction in non-manufacturing activity.
The seasonally adjusted manufacturing purchasing managers’ index (PMI) was 49.3, down 0.8 percentage point from September. The NBS classifies readings above 50 as expansion from the prior month and readings below 50 as contraction. The series stood at 49.2 in July and 49.8 in August, then rose to 50.1 in September before October’s decline. October was the third below-50 result in those four months.
Production and order measures also weakened. The production index fell 1.9 percentage points to 49.8, and new orders declined 1.1 percentage points to 49.4. New export orders retreated to 48.7 from 50.0.
Results diverged among firms and industries. Large enterprises registered 50.2, while medium-sized and small enterprises posted 48.4 and 47.5, respectively, according to the NBS interpretation. High-tech manufacturing recorded 51.3 and equipment manufacturing 50.6; consumer goods came in at 48.8 and high-energy-consuming industries at 47.3.
The non-manufacturing activity index, which covers services and construction, was 49.7, down from 50.2 in September. Construction registered 48.0, while services stood at 50.0.
The NBS said part of the weakness followed demand that had occurred before China’s National Day holiday; it also pointed to a complex international environment.
Reuters quoted Zhang Liqun, an analyst with China Federation of Logistics & Purchasing, as saying, “Insufficient demand is increasing downward pressure on the economy.”
The NBS said its manufacturing survey covered 3,200 sample enterprises across 31 industry categories; the non-manufacturing survey covered 4,300 enterprises across 43 categories. The agency’s calendar tentatively lists Nov. 30 for the November PMI release and says dates remain subject to adjustment.
