China’s factory activity contracted a slower pace – private survey

 

>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<

 

 

China’s factory activity continue to contract in October, though at slower pace, as protracted COVID-19 restrictions disrupted production and subdued demand, a private-sector survey showed on Tuesday.

The Caixin/S&P Global manufacturing purchasing managers’ index (PMI) came in at 49.2 in October, picking up from 48.1 in the previous month and slightly above analysts’ expectations for 49. But the figure was still below the 50-point mark that separates growth from contraction on a monthly basis.

Official data released on Monday showed that China’s official PMI unexpectedly fell into contraction last month.

Both output and new orders extended declines at the start of the fourth quarter as a pickup in COVID-19 clusters and stringent containment measures dragged on any meaningful rebound, the Caixin PMI showed.

Supplier delivery times lengthened as surveyed firms attributed transportation delays to virus containment measures.

The softer activity continued to pressure the labour market as the manufacturing employment fell for the seventh month in a row.

“The current domestic and international environments remain complicated and tough, and unfavourable factors affecting economic development have increased,” said Wang Zhe, an economist at Caixin Insight Group.

“In particular, the spread of the coronavirus in many regions significantly restricts both supply and demand,” Wang said.