Growth in China’s factory output slowed for the second consecutive month in October, according to official data, a sign that the economy is continuing to lose momentum amid the backdrop of an escalating trade war with the United States.
The manufacturing Purchasing Managers’ Index (PMI) fell to 50.2 for this month, down from 50.8 in September. This reading fell short of the market average of 50.6. The index is benchmarked at 50, with anything higher indicating sector expansion.
October is the first full month since the US introduced its largest round of tariffs yet on Chinese imports. It is also when the country takes an extended national holiday, or “Golden Week,” impacting monthly output.
National Bureau of Statistics representative Zhao Qinghe said that the October decline was partly attributable to a “complex and variable external environment” causing “fluctuations” in demand and supply.