Economic Buzz: China NBS manufacturing PMI contracts in October

China?s manufacturing activity in October contracted more than expected, shrinking to the lowest level in six months, an official survey showed on Friday, as trade tensions with Washington reignited during the month.

The official manufacturing purchasing managers? index came in at 49.0, data from the National Bureau of Statistics showed. A reading above the 50 benchmark indicates growth while one below that suggests contraction.

The latest reading reversed the recovery in recent months, after the PMI rose to a six-month high of 49.8 in September, compared to 49.4 in August and 49.3 in July.

The sub-indexes tracking production, new orders, raw material inventory and employment all sunk further into contraction, official data showed, pointing to a deeper manufacturing slowdown and softer demand.

The non-manufacturing PMI, covering construction and services, ticked up to 50.1, boosted by the renewed momentum in air and railway transportation, accommodation, cultural and sports-related entertainment activities. October saw an eight-day Golden Week holiday that ran from Oct. 1 to 8.

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