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China Factory Activity Falls Again in October as PMI Drops to 49.0

Analysts say the tariff pause eases pressure without reversing weak demand.

Overview

  • The official manufacturing PMI slipped to 49.0 in October, a six‑month low that missed the 49.6 forecast in a Reuters poll.
  • It marked a seventh straight month of contraction, with declines in new orders and production signaling persistent factory weakness.
  • The statistics bureau cited an eight‑day Golden Week holiday and a tougher external environment, while a property slump continues to weigh on domestic demand.
  • A limited U.S.–China truce cut fentanyl‑linked tariffs to 10%, paused rare‑earth export controls for one year and included plans to resume large U.S. farm purchases.
  • Despite weak activity, large industrial firms posted a 21.6% year‑on‑year profit jump in October, intensifying debate over broader stimulus versus targeted support.