Chinese manufacturing activity little changed at very low level in October, Caixin PMI data show
- Caixin PMI, which tracks smaller private firms, shows manufacturing growth was little changed at very low level in October
- Chinese Politburo signalled Wednesday night that it would enact additional measures to combat ‘growing downward pressure’ on the economy
Chinese manufacturing sector growth was little changed at a very low level in October amid pressures from the US trade war, data from financial news outlet Caixin showed.
The data released Thursday comes after the Chinese government signalled Wednesday night that it will enact new measures to combat “growing downward pressure” on the economy.
The manufacturing purchasing managers’ index compiled by Markit and published by Caixin inched up to 50.1 in October, just above the 50.0 level forecast by analysts in a Bloomberg survey and the reading of 50.0 in September.
The index level of 50 is the dividing point between expansion and contraction in the sector. The latest figure means that the manufacturing sector activity increased very slightly in October but remained at a very low level.
The Caixin result follows the official PMI data released Wednesday that showed manufacturing sentiment posted a larger-than-expected drop to 50.2 in October from 50.8 in September – meaning factory activity continued to expand but at a much slower pace.
As with the official PMI, the weak October result was led by export orders, which contracted for the seventh month in a row. Employment also contracted. Moreover, the outlook for production fell to an 11-month low.
But overall new orders edged on domestic demand and production remained in positive territory.