China's Factory PMI Falls to 49.3 as Weak Demand and Exports Drag October Activity
Updated
Updated · Central Oregon Daily · Oct 31
China's Factory PMI Falls to 49.3 as Weak Demand and Exports Drag October Activity
3 articles · Updated · Central Oregon Daily · Oct 31
Summary
China's official manufacturing PMI dropped to 49.3 in October from 50.1 in September, marking the third contraction in four months and missing the 50.0 Reuters poll forecast.
Soft domestic demand and fading export momentum drove the decline as holiday spending fizzled, Christmas-related overseas orders cooled after being front-loaded in September, and both new orders and new export orders stayed in contraction.
Production and purchasing activity also slipped below 50, while the non-manufacturing PMI fell to 49.7 from 50.2, showing weakness spreading beyond factories into services and construction.
Economists said Beijing may need stronger support for domestic demand in 2027 if external demand weakens, including broader mortgage-interest and investment-loan subsidies.
Exports are still keeping China's trade surplus on track to exceed last year's $1.2 trillion, but the data suggest they may no longer be strong enough to offset sluggish consumer spending.