Business · Economy · 1 hr ago
China’s factory activity contracts in October as export orders fall
China’s factory activity contracted in October, reversing a small rebound in September.
The official manufacturing purchasing managers’ index fell to 49.3 from 50.1; readings below 50 signal contraction.
New export orders also slipped, to 48.7 from 50.0, while the production measure fell to 49.8.
Weak domestic demand, partly linked to a prolonged property downturn, has led Chinese companies to seek more buyers abroad.
The slowdown adds pressure on policymakers as they work to support the recovery and meet this year’s growth target, while trading partners criticize China’s growing trade surpluses.
Trade is expected to feature in a mid-November meeting between U.S. President Donald Trump and Chinese President Xi Jinping at an Asia-Pacific summit in Shenzhen.
China’s official manufacturing purchasing managers’ index fell to 49.3 in October, indicating factory activity contracted.
The reading was down from 50.1 in September, reversing the previous month’s rebound.
New export orders fell to 48.7, while the production subindex dropped to 49.8.
The decline adds to challenges for policymakers seeking to sustain an economic recovery and meet this year’s growth target.
China’s export growth has drawn complaints from trading partners concerned about trade deficits and competition from cheaper Chinese goods.
- Who
- China’s manufacturing sector and policymakers.
- What
- Factory activity contracted in October, with the official manufacturing PMI at 49.3.
- When
- October 2026; the data was released on Saturday, October 31.
- Where
- China.
- Why
- New export orders softened, while domestic demand has been weakened by the long-running property downturn. Bloomberg said the decline underscored challenges for policymakers seeking to sustain recovery and meet the growth target.
This story does not have two clearly opposing sides.
China’s official manufacturing PMI stood at 50.1 after a rebound.
The official manufacturing PMI fell to 49.3, and new export orders declined to 48.7.
German President Frank-Walter Steinmeier said in a speech at Beijing University that China’s efforts to protect its economy must not make other countries increasingly dependent on it.
Steinmeier met Chinese President Xi Jinping and Premier Li Qiang, who said China was willing to import more high-quality German products.
- October 2026 PMI
- 49.3
- September 2026 PMI
- 50.1
- October new export orders subindex
- 48.7, down from 50.0 in September
- October production subindex
- 49.8, down from 51.7
- EU trade deficit with China
- $1.1 billion a day in 2025
3 sources
What people are saying
understandable that China wants to protect its economy against external shocks and negative influences
that must not mean making other countries increasingly dependent on China