China’s factory activity declined for the seventh month in a row in October on weak domestic demand, complicating the economic outlook for policymakers in Beijing as they grapple with a trade war with the US.
The purchasing managers' index fell to 49 this month, according to the official data released on Friday, missing the average forecast from analysts surveyed by Bloomberg of 49.6 and trailing September’s figure of 49.8. A reading below 50 represents a contraction in activity.
The results were driven by seasonal factors, such as a weeklong public holiday at the beginning of the month, as well as “a more complex international environment”, said Huo Lihui, chief statistician of the service industry survey centre of the National Bureau of Statistics.