China’s factory activity shrinks
Factory activity in China shrank for the sixth straight month in October and by more than expected, while service sector growth eased as firms grapple with the weakest economic growth in nearly 30 years.
The world’s second-largest economy is facing heightened risks from slowing global demand and the Sino-US trade war, adding pressure on policymakers to roll out more stimulus to avoid a sharper slowdown and bigger job losses.
The Purchasing Managers’ Index (PMI) fell to 49.3 in October, China’s National Bureau of Statistics said on Thursday, versus 49.8 in September. The 50-point mark separates growth from contraction on a monthly basis.
Economists polled by Reuters had expected the reading would be unchanged from September.
Weighed down by cooling domestic demand, sluggish investment and a protracted trade war with the United States, China’s economic growth slowed to a near 30-year low of 6.0 percent in the third quarter, raising expectations that Beijing will need to roll out more support measures soon.
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