China’s factory activity in October expanded at a slower pace as new orders and output both waned amid tariff anxiety, a private-sector survey showed on Monday, reports Reuters. The RatingDog China General Manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global, dropped to 50.6 in October from 51.2 in September, missing analysts’ expectations of 50.9 in a Reuters poll. The 50-mark separates growth from contraction.
“Among the sub-indices, only employment showed a positive month-on-month change, while all other indicators declined to varying degrees,” said Yao Yu, founder of RatingDog. The survey was taken when US President Donald Trump had threatened to impose 100% tariffs on Chinese goods.
However, he has since agreed with China’s leader Xi Jinping on Thursday to trim 10% tariffs on Chinese goods in exchange for Beijing cracking down on the illicit fentanyl trade, resuming US soybean purchases and keeping rare earths exports flowing.