China manufacturing PMI in Oct. dips lowest in over 2 years to 50.2

02, Nov. 2018

TOKYO, NNA – China reported Wednesday the official Manufacturing Purchasing Managers’ Index dipped in October to 50.2, the lowest level in over two years, amid escalating trade tensions with the United States.

The reading was down from 50.8 in September, the second consecutive monthly decline and the lowest since July 2016, but it remained above 50, according to the National Bureau of Statistics.

A reading above 50 indicates expansion, while a reading below that signals contraction.

In the sub-indexes, production, new orders and new export orders fell more than 1 point from the previous month. New export orders declined for the fifth straight month, the data show.

The statistics bureau attributed the fall to long national public holidays early in the reporting month, and also said the complexity of external factors caused fluctuations in the manufacturing sector.

Thirteen out of 21 sectors remained above 50 in October. Industrial activity overall will continue to expand despite a possible slowdown in the pace, according to the bureau.

Data for the index are collected from 3,000 firms on procurement, production, distribution and other activities.

Services PMI also dropped from 54.9 in September to 53.9 in October.