China's Manufacturing PMI Falls to 49.3 in October, Third Contraction in Four Months

China's factory activity contracted in October for the third time in four months, as the official manufacturing purchasing managers' index fell to 49.3 from 50.1 in September, the National Bureau of Statistics said Saturday. The reading missed a Reuters poll forecast of 50.0 and dropped below the 50 threshold separating expansion from contraction. Sub-indexes for new orders and new export orders both remained in contraction, while production and purchasing activity slipped from expansion into contraction. The non-manufacturing PMI, covering services and construction, fell to 49.7 from 50.2. Economists urged additional support measures. Zhang Liqun of the China Federation of Logistics & Purchasing said insufficient demand is increasing downward pressure on the economy. Pinpoint Asset Management's Zhang Zhiwei said China will need more significant policy support to boost domestic demand if external demand weakens in 2027. Some sectors outperformed, with railway, shipbuilding, aerospace and electronics sub-indexes at or above 53.0.