China’s Manufacturing Activity Unexpectedly Contracted in October Amid Recovery Concerns

The official PMI is below market expectations as both Reuters’ and Bloomberg’s survey of economists projected China’s official PMI of 50.2 in October.

A worker welds building material parts at a factory in Nantong, Jiangsu Province, China, on May 16, 2023. STR/AFP via Getty Images

China’s manufacturing activity unexpectedly shrunk in October, according to state official survey data, a negative sign showing that the world’s second-biggest economy is facing a bumpy road to recovery.

China’s National Bureau of Statistics data, released on Oct. 31, showed that the manufacturing purchasing managers’ index (PMI) declined to 49.5 in October, compared with 50.2 in September.