China Manufacturing Contracts for First Time in Three Months, Caixin PMI Shows

Activity in China’s manufacturing sector contracted in October for the first time in three months, dragged down by weak external demand, a Caixin-sponsored survey showed Wednesday.

The Caixin China General Manufacturing Purchasing Managers’ Index (PMI), which gives an independent snapshot of the sector, fell to 49.5 in October from 50.6 the previous month. An index reading above 50 signals an expansion in activity, while a number below that indicates a contraction.