- Zhao Qinghe, a senior statistician at the NBS
China's manufacturing activity declined in October, but at a slower pace than expected. The preliminary Caixin China manufacturing PMI rose to 48.3 in the reported month, beating economists expectations for 47.5 and up from a final reading of 47.2 in September, which was the lowest level since March 2009. A reading above the 50-mark threshold indicates expansion in the sector, while below signals contraction. At the same time, China's official manufacturing PMI contracted in October for a third consecutive month. The gauge came in at 49.8 in the measured month, missing market expectations of 50.0, according to the National Bureau of Statistics. New export orders dropped for a 13th month in a row, whereas the sub-index for new orders, a bellwether for both domestic and foreign demand, rose marginally to 50.3, compared with September's 50.2.
The ongoing contraction in manufacturing activity is consistent with other indicators that suggest sustained weakness in economic production. The world's second biggest economy grew 6.9% in the third quarter, the weakest pace of expansion in more than six years. A number of analysts argue that real growth rates are much weaker than the official data shows.
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