China factory growth slows in October as export orders ease, private PMI shows
SPY•China’s private manufacturing PMI edged down to 52.0 in October from 52.1 in September, above the 51.6 forecast. Output growth reached a six-month high, while export order growth slowed to a three-month low.
1. October factory activity
China’s factory activity expanded at a marginally slower pace in October, according to the RatingDog China General Manufacturing PMI compiled by S&P Global. The index edged down to 52.0 from 52.1 in September, beating a forecast of 51.6; readings above 50 indicate growth.
2. Orders and output
Output rose at its fastest rate in six months, while the new orders index slipped to 53.3 from 53.4. Export order growth slowed to a three-month low, with consumer and intermediate goods makers easing while investment goods producers accelerated.
3. Prices and confidence
Output prices fell after rising in September as firms cut prices to support sales and input costs eased. Employment rose marginally for a second straight month, backlogs increased for a ninth month, and business confidence remained positive but fell to a nine-month low. The private survey contrasted with China’s official PMI, which showed factory activity unexpectedly falling.
