China PMI data signals economic contraction
China's official manufacturing PMI, released by the National Bureau of Statistics (NBS), fell to 49.3 in October, below market expectations of 49.9. The decline from September's 50.1 reading pushed the index below the 50-point threshold separating expansion from contraction. The non-manufacturing PMI also dropped to 49.7, missing the 50.0 forecast and falling from the previous 50.2 reading.
The official composite PMI declined from 50.7 to 49.7, signaling a contraction in overall economic activity. With both manufacturing and non-manufacturing indicators falling below 50, the data pointed to weakening growth momentum in China. The figures could strengthen expectations for additional economic stimulus while weighing on global commodity demand and Asian financial markets.
Comments