Macro
China's official factory gauge falls to 49.3 in October, back below the 50 line
The National Bureau of Statistics blamed demand pulled forward before the National Day holiday, while high-tech manufacturing stayed in expansion.
HedgeWeekly News Desk ·
China's official manufacturing purchasing managers' index fell to 49.3 in October from 50.1 in September, the National Bureau of Statistics said on Saturday. A reading below 50 signals contraction, so the gauge has dropped back under the line after one month above it.
Both main sub-indexes weakened. Production slid to 49.8 from 51.7, and new orders fell to 49.4 from 50.5. Large manufacturers held at 50.2, but medium-sized firms printed 48.4 and small firms 47.5. The raw-material purchasing price index fell four points to 56.8, and the factory-gate price index dropped 2.3 points to 51.7.
NBS statistician Huo Lihui attributed the decline partly to demand being brought forward before the National Day holiday and to an unstable international environment. High-tech manufacturing stayed in expansion at 51.3, and equipment manufacturing came in at 50.6. The non-manufacturing index eased to 49.7 from 50.2, with services at 50.0, and the composite index fell to 49.7 from 50.7.
For allocators, the release lands as Asian equities have been under pressure and just before the People's Bank of China moves to an overnight policy rate framework on November 2, a change reported by Xinhua. Official third-quarter growth was 4.5% year on year, per the same report. Watch whether November's reading confirms a holiday-related dip or a broader slowdown, and whether the split between weak small firms and resilient high-tech output persists.