China’s Manufacturing Activity Returns to Contraction

China’s manufacturing activity returned to contraction in October as domestic and overseas demand weakened.

The official manufacturing purchasing managers’ index (PMI) fell to 49.3, while the nonmanufacturing PMI, covering services and construction, dropped to 49.7, the National Bureau of Statistics said Saturday. 

Both fell below the 50 threshold separating expansion from contraction, dragging the composite PMI to 49.7.

Manufacturing weakness reflected a pullback in overseas Christmas-related orders after September, as well as softer domestic consumption following the National Day holiday, the China Federation of Logistics and Purchasing said. New export orders and new orders for consumer goods both contracted.