Chinese factory activity contracts for 3rd straight month in October

ANKARA

Activity in the Chinese manufacturing sector narrowed for the third month in a row as COVID-19 containment measures weighed on both output and demand, a business survey revealed on Tuesday.

The Caixin China General Manufacturing Purchasing Managers’ Index (PMI) rose to 49.2 in October from September's 4-month low of 48.1, according to US-based financial services company S&P Global.

But despite the rise, the figure was still below the threshold level that indicates contracting activity.

China’s zero-Covid policy cut client demand and disrupted factory operations, both output, and new orders further declined but at a slower pace in October.

The purchasing activity of the manufacturers in October rose for the first time since July.

Some Chinese factories reduced the number of employees, thanks to the automation of some processes across the production line. Thus, overall manufacturing employment decreased for the seventh consecutive month in October.

Selling prices went down a sixth successive month in October as firms aimed to stimulate sales and improve competitiveness.