China’s October business surveys showed both factory and non-manufacturing activity below the 50-point expansion line, even as large companies and high-tech and equipment producers continued to register readings above it.
The National Bureau of Statistics of China (NBS) reported that October’s manufacturing purchasing managers’ index (PMI) was 49.3%, down 0.8 percentage point from September’s 50.1%. Its non-manufacturing business activity index fell 0.5 percentage point to 49.7%, from 50.2%. The bureau uses 50 as the divider: a higher reading indicates activity expanded from the previous month, while a lower one signals contraction.
The manufacturing results also split by company size. Large firms registered 50.2%, compared with 48.4% for medium-sized businesses and 47.5% for small ones. The NBS said high-tech manufacturing and equipment manufacturing remained above 50. High-tech manufacturing recorded 51.3% and equipment manufacturing 50.6%, while consumer goods were at 48.8% and high-energy-consuming industries at 47.3%. The composite PMI output index, combining manufacturing and non-manufacturing, fell to 49.7% from 50.7%.
Outside factories, services activity was 50.0%, down 0.2 percentage point, while construction slipped 2.3 percentage points to 48.0%. The NBS said weaker financial-sector activity accounted for most of the services decline. That left services at the threshold as construction and the broader non-manufacturing measure registered below it.
The bureau linked part of the manufacturing decline to demand pulled forward before the National Day holiday and volatile conditions in the international environment. The NBS survey included 3,200 manufacturing enterprises across 31 industry categories and 4,300 non-manufacturing enterprises across 43 categories.
The update follows EconoTimes’ earlier report on the factory reading and weaker orders. FXStreet reported market consensus of 50.0% for the manufacturing PMI.
The NBS calendar tentatively lists Nov. 30 for the November PMI release and says the date may change.
