China’s factory, services activity both contract in October as coronavirus curbs weigh on economy
- China’s official manufacturing purchasing managers’ index (PMI) fell to 49.2 in October from 50.1 in September
- Official non-manufacturing PMI, which measures business sentiment in the services and construction sectors, fell to 48.7 in October from 50.6 in September
Both China’s factory and services activity contracted in October, data released on Monday showed, pointing to a “further loss of momentum” as coronavirus disruptions worsened and export orders remained under pressure.
The official non-manufacturing PMI, which measures business sentiment in the services and construction sectors, fell for the first time since May, dropping to 48.7 in October from 50.6 in September.
“The official PMIs point to a further loss of momentum in this month as virus disruptions worsened and export orders remained under pressure. With the zero-Covid policy here to stay, we think the economy will continue to struggle heading into 2023,” said Zichun Huang, China economist at Capital Economics.
All in all, October looks to have been a weak month for the economy, and November looks as if it will be no better than October
The official composite PMI, which includes both manufacturing and services activity, fell to 49.0 in October, down from 50.9 in September.