The Caixin China General Manufacturing PMI, which evaluates manufacturing sector’s performance based on a survey of 430 private industrial firms, dropped to 49.5 in October 2023, down from 50.6 in September.
These numbers fall short of the forecasted 50.8.
In October, the manufacturing sector shrank for the first time since July, with decreased output reflecting the delicate economic recovery.
New orders showed minimal growth, and foreign sales declined for the fourth consecutive month due to slow global conditions and high prices.
Input costs reached a nine-month high because of pricier raw materials and oil, while selling prices increased moderately.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, commented on the development by saying:
“More data has come through in China, indicating that the manufacturing sector has struggled unsuccessfully to hang onto growth. The Caixin S&P PMI data showed that factory activity contracted in October amid weaker demand globally.”