The PMI fell to 50.2 in October, down from 50.8 the previous month. The export index fell to 46.9, the lowest since January 2016. The trade war with the US is a major factor.
Beijing (AsiaNews) – China’s manufacturing sector expanded at its slowest pace in more than two years in October, due mainly to the intensifying trade war with the United States and the National Golden Week holiday that started on 1st October.
China’s manufacturing purchasing managers index (PMI), which gives a snapshot of operating conditions in the manufacturing sector, dipped to 50.2 in October from 50.8 in the previous month, according to data from the National Bureau of Statistics (NBS). The reading marked its lowest level since July 2016.
The manufacturing PMI’s drop adds to concerns that the world’s second-largest economy will continue its slowdown in the coming months.
The PMI includes a number of sub-indexes such as output, new orders, stocks of purchased items, employment and suppliers’ delivery times.
Among other gauges in the PMI survey, new export orders dropped for the third consecutive month to 46.9 in October, the lowest reading since January 2016.
The manufacturing sector is directly affected by the tariffs Washington placed on US$ 250 billion of Chinese imports. The October reading is the first since the US slapped a 10 per cent tariff on US$ 200 billion of Chinese goods on 24 September.