China factory growth slows in October as export orders ease, private PMI shows
FXI•China’s RatingDog manufacturing PMI edged down to 52.0 in October from 52.1 in September, but remained above the 50 level that separates growth from contraction and beat the 51.6 forecast. Output growth reached a six-month high as export order growth slowed to a three-month low.
1. Factory activity expands
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 slipped to 52.0 from 52.1 in September, above the 51.6 forecast.
2. Orders and output diverge
Output rose at its fastest rate in six months, while the new orders index edged down 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 weaken
Output prices fell after rising in September as competition drove firms to cut prices; export prices declined for the first time since November 2025. Employment rose marginally for a second month, backlogs increased for a ninth month, and business confidence remained positive but fell to a nine-month low. The private reading contrasted with China’s official PMI, which showed factory activity falling.
