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Xinhua: China’s October Manufacturing PMI Dropped to 49.3 Percent

Xinhua recently reported that the Chinese National Bureau of Statistics just released its official October manufacturing PMI (Purchasing Managers Index) number. The latest index number has suffered a month-over-month 0.5 percent decline since September, to 49.3 percent. This is now an eight-month low. According to the new report, in October, large scale companies manufacturing PMI declined 0.9 percent, to 49.9 percent. Mid-scale companies declined to 49.0 percent, which is a 0.4 percent increase from last month, and the manufacturing PMI small-scale companies dropped down to 47.9 percent, representing a 0.9 percent decline. Among all subcategories, the new orders index reached 49.6 percent (a 0.9 percent decline), the raw material inventory index reached 47.4 percent (a 0.2 percent decline), and the employment index reached 47.3 percent (a 0.3 percent increase). These are the three subcategories that kept the overall manufacturing PMI below 50 percent. PMI is an indicator of financial activity reflecting purchasing managers’ acquisition of goods and services. A PMI number below 50 typically reflects a decline.

Source: Xinhua, October 31, 2019