Free Trial

Chinese factory activity contracts in October as pandemic recovery falters

Visitors look at the robotic arms assembly a vehicle frame during the annual World Robot Conference at the Etrong International Exhibition and Convention Center in the outskirt of Beijing, on Aug. 17, 2023. China’s factory activity contracted in October, an official survey said Monday, Oct. 30, a sign that China’s economic growth remains uneven despite a raft of policies meant to support business. (AP Photo/Andy Wong, File)

HONG KONG (AP) — 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. But economists say wider reforms are needed to address long-term problems that are stifling growth.

“If reflected in hard activity data, today’s PMIs suggest that the momentum of China’s economic growth ebbed at the beginning of the fourth quarter,” Robert Carnell, regional head of research for ING Economics in Asia Pacific, said in a report.

Carnell said support measures, including increased government spending, will help offset any tendency for the economy to slow.

“Even so, today’s data suggest that although it has weakened, economic growth is still ongoing,” he said.

Recent data suggest China will likely to hit its growth target of 5% for the year, he said. The economy expanded at a 4.9% annual pace in the last quarter.

The property sector, once an important pillar of China’s economy, has now become a drag on growth as developers struggle with huge debt burdens and slowing sales.

Where should you invest $1,000 right now?

Before you make your next trade, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.

They believe these five stocks are the five best companies for investors to buy now...

See The Five Stocks Here

5G Stocks: The Path Forward is Profitable Cover

Click the link below and we'll send you MarketBeat's guide to investing in 5G and which 5G stocks show the most promise.

Get This Free Report
Like this article? Share it with a colleague.

Featured Articles and Offers

Recent Videos

Why Energy Stocks Are Poised for Explosive Growth in 2025
From Landfills to Profits: Opal Fuels CEO Shares How the Company Turns Trash into Cash
The Real Reason Tesla Stock Is Soaring – and Why Tech Expert Says It Won’t Stop

Stock Lists

All Stock Lists

Investing Tools

Calendars and Tools

Search Headlines