An official gauge of Chinese manufacturing activity fell unexpectedly after rising into expansion territory for a month in September, signaling renewed weakness in the sector.
The official purchasing managers’ index for Chinese manufacturing fell to 49.5 in October from 50.2 in September, the National Bureau of Statistics said on Tuesday. A reading above 50 indicates an expansion of activity, while a reading below indicates a contraction.
The result was below the forecast of 50.2 according to a Wall Street Journal poll of economists.
The manufacturing sub-index fell to 50.9 in October from 52.7 in September. The index for total new orders fell to 49.5 in October, compared to 50.5 in September, while that for new export orders fell to 46.8 from 47.8 in September.
Meanwhile, China’s PMI for the non-manufacturing sector, which includes both services and construction, fell to 50.6 in October from 51.7 in September, the statistics agency said.
Tracking services sub-index activity fell to 50.1 from 50.9 in September, while the construction sub-index fell from 56.2 in September to 53.5 in October.