Chinese factory activity contracts in October

Hong Kong: An official survey of manufacturers shows China’s factory activity contracted in October, suggesting the economy remains on uneven footing. The purchasing managers’ index, or PMI, fell to 49.5 in October on a 100-point scale, down from 50.2 last month, according to the National Bureau of Statistics and the China Federation of Logistics & Purchasing.

A figure below 50 indicates a contraction in manufacturing activity while a number above 50 reflects an expansion. The non-manufacturing PMI for October fell 1.1 percentage points to 50.6, a sign of slowing activity in China’s service and construction industries. Factory output and supplier delivery times improved while measures of new orders, raw materials and employment contracted. China’s recovery from the COVID-19 pandemic has faltered after an initial burst of growth earlier in the year faded more quickly than expected. In recent months, the government has raised spending on building ports and other infrastructure, cut interest rates and eased curbs on home-buying.