China’s factory activity shrinks in October as coronavirus curbs hit output, demand

Caixin/S&P Global manufacturing purchasing managers’ index (PMI) stood at 49.2 in October from 48.1 in September

On Monday, China’s official manufacturing PMI fell to 49.2 in October, down from 50.1 in September

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China’s Caixin/Markit manufacturing purchasing managers’ index (PMI) rose to 49.2 in October from 48.1 in September, data released on Tuesday showed. Photo: AFP

Published: 10:01am, 1 Nov 2022Updated: 11:23am, 1 Nov 2022

China’s factory activity weakened in October as protracted coronavirus restrictions disrupted production and subdued demand, a private-sector survey showed on Tuesday, suggesting a weaker economic recovery in the fourth quarter.

The Caixin/S&P Global manufacturing purchasing managers’ index (PMI) stood at 49.2 in October, up from 48.1 in September and slightly above analysts’ expectations for 49.0. But the figure was still below the 50-point mark that separates growth from contraction on a monthly basis.

In line with China’s official PMI, which unexpectedly fell into contraction last month, waning factory activity weighed on the fragile recovery of the world’s second-biggest economy amid a deepening property crisis and weakening demand.

“The Caixin manufacturing PMI rose in October, but remained weak. Taken together with the official survey published [on Monday], it points to a slowdown in industrial activity last month. We think the economy will continue to struggle in the near-term amid the deepening global downturn and ongoing property sector woes,” said Zichun Huang and Julian Evans-Pritchard, economists from Capital Economics.

The current domestic and international environments remain complicated and tough, and unfavourable factors affecting economic development have increased

Wang Zhe

Both output and new orders extended declines at the start of the fourth quarter as a pickup in virus clusters and stringent containment measures dragged on any meaningful rebound, the PMI showed.

Supplier delivery times lengthened as surveyed firms attributed transport delays to virus-containment measures.