China's factory activity contracts as export orders weaken

Summarised from 2 outlets · Updated 31 Oct, 05:50 · Archive

China's manufacturing activity contracted in October, with export orders declining as the world's second-largest economy faces pressure from trading partners over its growing trade surpluses.

China's official manufacturing purchasing managers' index fell to 49.3 in October, compared with 50.1 in September and 49.8 in August. Readings below 50 indicate contraction. New export orders fell to 48.7 from 50.0 in September, while production dropped to 49.8 from 51.7.

The contraction reflects softening export orders despite Chinese companies shipping more goods abroad to find buyers. Domestic demand has been weakened by the property sector downturn. China has shifted exports towards Europe, Southeast Asia and Latin America since the US imposed higher tariffs last year.

Trading partners are complaining about growing trade deficits with China. The European Union, highlighting what it says is an unsustainable trade deficit of $US1.1 billion a day in 2025, has struck a deal with Beijing to cap imports of Chinese hybrid vehicles. Economists forecast China's exports are likely to remain robust for the rest of the year and that its overall trade surplus in 2026 could surpass last year's record of $US1.2 trillion.

How it is being reported

• China's factory activity slips as export orders weakenChina's factory activity contracted in October, reversing the previous month's rebound.Perth Now · 31 Oct, 05:15
• China's factory activity slips as export orders weakenChina's factory activity contracted in October, reversing the previous month's rebound.The West Australian · 31 Oct, 05:15

In this story: China · European Union · United States · Europe · Southeast Asia · Latin America · National Bureau of Statistics

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