BEIJING (Reuters) – Manufacturing activity in China contracted unexpectedly in October, a private survey showed on Wednesday, raising questions about the state of the country’s fragile economic recovery at the start of the fourth quarter.
The manufacturing sector PMI index calculated by Caixin/S&P Global stood at 49.5 in October, compared to 50.6 the previous month, below the threshold of 50 which separates contraction and expansion of activity.
This is a number lower than the consensus, which stood at 50.8.
These data show a further deterioration in manufacturing activity, as Chinese factories reported a further drop in production, in a context of slowing sales, affected by weak foreign demand.
According to the survey, new orders fell in October for the fourth consecutive month, while the international economic climate is relatively gloomy.
“The economy has shown signs of recovery, but the foundation for recovery is not strong. Demand is weak, many uncertainties, both internal and external, remain, and expectations are still relatively low,” Wang said Zhe, economist at Caixin Insight Group.
(Report by Ellen Zhang and Ryan Woo; by Camille Raynaud)
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