China’s factory activity unexpectedly fell in October, weighed by softening global demand and strict domestic COVID-19 curbs, which hit production, travel and shipping in the world’s second-largest economy, reports Nikkei Asia. While China’s economic growth beat expectations in the third quarter, persistent COVID-19 curbs, a prolonged property slump and global recession risks are clouding a more robust revival in factory and consumer activity.
The official manufacturing purchasing managers’ index (PMI) fell to 49.2 from 50.1 in September, the National Bureau of Statistics said on Monday.
The result unexpectedly broke below the 50-point mark that separates growth from contraction with economists in a Reuters poll expecting the PMI to come in at exactly 50.0, which would have suggested no change in the pace of activity.