Chinese manufacturing unexpectedly weakened in October, data showed on Monday, due to disruptions from COVID-related lockdowns and a decrease in global demand for exports. This is expected to add pressure on the economy as the ruling Communist Party tries to reverse a slowdown.
A monthly purchasing managers' index (PMI) fell to 49.2 last month, missing expectations of 50.0 and falling below from September's 50.1. According to the government statistics bureau and an official industry group if the numbers are below 50 it indicates that activity is contracting.
The manufacturing PMI that unexpectedly risen in September is now back in contraction territory. The country's non-manufacturing PMI also contracted last month falling below the expected 50.2 at 48.7. Together they have affected China's composite PMI that read at 49.0 for October, its first contraction since May.
The National Bureau of Statistics and the China Federation of Logistics & Purchasing announced that new orders, measures of production, and employment have declined.
This reading is in line with forecasts that the economic growth would weaken in late 2022 as the global demand was affected by multiple lockdowns affecting consumer spending.
