China's Factory Activity Contracts Again as Export Orders Soften
Written by AI from clickorlando.com's report. Not checked by a person.
China's official manufacturing purchasing managers' index fell to 49.3 in October, back into contraction territory, as new export orders dropped amid global trade tensions and weakening domestic demand.
China's official manufacturing PMI slipped to 49.3 in October 2026 from 50.1 in September, falling back below the 50-point threshold that separates expansion from contraction, reversing the previous month's rebound. The new export orders subindex fell to 48.7 from 50.0, while the production subindex contracted to 49.8 from 51.7 the month before. The data reflected a dual squeeze on Chinese manufacturers: weakening domestic demand compounded by an ongoing property-sector downturn, alongside growing pushback from trading partners against China's swelling surpluses. The European Union had highlighted a daily bilateral trade deficit with China of $1.1 billion in 2025, prompting various rebalancing measures including a deal with Beijing to cap imports of Chinese hybrid vehicles. Despite the October reading, some economists expected China's export volumes to remain robust for the rest of the year, with the country's overall trade surplus in 2026 potentially surpassing the prior year's record of $1.2 trillion. Trade is also expected to feature at a mid-November meeting between U.S. President Donald Trump and Chinese President Xi Jinping on the sidelines of the Asia-Pacific Economic Cooperation summit in Shenzhen.
