China PMI: Factory activity unexpectedly contracts in October as demand drops

News Snapshot:

Hong Kong CNN — China’s massive manufacturing sector has contracted once again amid weak demand, fueling calls for stronger policy support to boost growth. The official manufacturing Purchasing Managers’ Index (PMI) dropped to 49.5 in October from 50.2 in September, according to China’s National Bureau of Statistics (NBS) on Tuesday. That missed an estimate of 50.2 from a Reuters poll of analysts. The non-manufacturing PMI, which covers the services and construction industries, fell to 50.6 this month, the lowest level since China lifted its Covid-19 restrictions in December 2022. The PMI is a monthly indicator of economic activity. A reading...