Economic Buzz: China Manufacturing PMI At 49.2 In October

1 Nov 2022 , 11:14 AM

Chinas manufacturing activity continued to shrink in October, albeit at a slower pace, as Covid-19 outbreaks and consequent tightening of prevention measures dampened production and demand. The Caixin manufacturing Purchasing Managers Index rose to 49.2 in October from 48.1 in the previous month, data from S&P Global showed on Tuesday. Nonetheless, the score has remained below the neutral 50.0 for the third straight month suggesting contraction. Elsewhere, the official counterpart published on Monday also showed that the index dropped to 49.2 from 50.1 in September. The private survey showed further declines in both output and new orders, with Covid-19 a principal factor behind lower client demand and disrupted factory operations. Nonetheless, decreases were only mild and slowed in both cases. There were another decline in new orders from foreign markets, reflecting slowing global economic growth and challenges in transporting goods overseas. Companies reduced their workforce numbers mainly due to the automation of some processes. Employment declined for the seventh consecutive month. Meanwhile, manufacturers ramped up their purchasing activity in October, marking the first such increase since July and pre-production inventories rose for the first time in three months. Powered by Commodity Insights