31.10.202501:34:46UTC+00China Manufacturing Contracts More Than Expected

In October 2025, China's official NBS Manufacturing Purchasing Managers' Index (PMI) decreased to 49.0, down from 49.8 in September, falling short of the market's 49.6 prediction. This marks the seventh consecutive month of contraction in factory activity, although the rate of decline was the least severe in this sequence, indicating a pressing need for further stimulus to invigorate domestic consumption. For the first time in six months, output decreased, dropping to 49.7 in October from September’s 51.9, and new orders contracted at a quicker rate (48.8 compared to 49.7). International sales saw the most significant drop since April (45.9 against 47.8), and purchasing activity declined at the sharpest rate in five months (49.0 versus 51.6). Employment decreased slightly more rapidly (48.3 versus 48.5), and delivery times were extended the most in five months (50.0 versus 50.8). In terms of prices, the inflation rate for input costs dropped to a three-month low (52.5 versus 53.2), while selling prices experienced the steepest downturn since June (47.5 versus 48.2). Looking forward, business confidence diminished to a three-month low (52.8 versus 54.1).