China’s RatingDog Manufacturing Purchasing Managers Index (PMI) dipped to 50.6 in October, according to data released Monday by Caixin Insight Group and S&P Global. The figure marks a slowdown from September’s 51.2, though it still sits above the neutral 50 mark, signaling continued, but modest, expansion in the manufacturing sector, Azernews reports, citing foreign media.
Yao Yu, Founder of RatingDog, said: “The decline in the PMI reflects a slowdown in manufacturing growth. Both production and demand expansion eased in October. Export orders fell sharply due to heightened trade uncertainties, dragging the new orders sub-index into contraction territory.”
On the production side, Yao noted that uncertainty in the global environment also slowed output growth, even though all production-related sub-indices remain above 50. Purchasing activity growth slowed significantly as manufacturers became more cautious.
Analysts warn that the slowdown highlights persistent pressures from global trade tensions and weakening overseas demand. Many suggest that targeted government policies may be needed to maintain momentum and prevent a sharper slowdown in the months ahead.
Despite the overall softening, some sectors are holding up well. High-tech manufacturing, electric vehicle components, and green energy equipment showed resilience, hinting at China’s gradual pivot toward more innovation-driven and sustainable industrial growth.
Market observers say the data could influence policy decisions and investor sentiment, as authorities weigh measures to support both domestic demand and exports in the face of global uncertainties.
