China’s manufacturing activity unexpectedly contracted in October, damping hopes of increasing momentum in the world’s second-largest economy.The country’s official manufacturing purchasing managers’ index came in at 49.5 this month, missing forecasts and trailing a reading of 50.2 in September. A reading below 50 marks contraction against the previous month.
The contraction, which reversed last month’s return to expansion, marked a further blow for policymakers, who are under pressure to tackle a slowdown across the country’s economically critical property sector and jump-start lagging growth.
It also followed better than expected gross domestic product growth of 4.9 per cent year on year in the third quarter, which had raised hopes that China’s economy was turning a corner after low post-pandemic activity disappointed projections.