China's October manufacturing PMI falls to 49.3, missing forecast; non-manufacturing also contracts (Oct 31)
What happened
China's National Bureau of Statistics reported on Saturday that the official manufacturing PMI fell to 49.3 in October from 50.1 in September, missing the Reuters poll forecast of 50.0 and marking a return to contraction — the third contraction in four months. The production sub-index dropped to 49.8 from 51.7 and new orders fell to 49.4 from 50.5, with new export orders also weakening to 48.7. The non-manufacturing PMI (services and construction) eased to 49.7 from 50.2, and the composite output index fell to 49.7 from 50.7. NBS statistician Huo Lihui attributed part of the weakness to demand pulled forward ahead of the National Day holiday and a complex international environment.
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Start your free 14-day trialWho’s affected
- China-exposed U.S. multinationals and industrials (cyclicals, semiconductors, materials)
- Commodity-linked names (copper, steel, energy inputs on weaker Chinese demand)
- U.S. exporters and Asia-listed peers on soft export orders