China’s manufacturing activity contracted in October as firms reported a fresh decline in production amid weak foreign demand, survey results released by S&P Global showed on Wednesday. <\/p>\n
The Caixin manufacturing Purchasing Managers’ Index dropped to 49.5 in October from 50.6 in the previous month. The sector contracted for the first time since July. <\/p>\n
There was a renewed fall in manufacturing production in October. Although moderate, the decrease contrasted with modest growth in the previous two months. <\/p>\n
At the same time, new orders increased only marginally. Sluggish global economic conditions and high prices dampened sales. Export orders declined for the fourth straight month. <\/p>\n
Lower production as well as muted client demand weighed on purchasing activity. Firms relied on current stock to offset the rising costs. On the other hand, weaker-than-expected sales and the delayed shipment of goods led to the sharpest growth in inventories of postproduction items since September 2015.<\/p>\n
The survey showed that average delivery times for purchased inputs improved slightly in October. <\/p>\n
Manufacturers’ reduced their staffing levels at the quickest pace since May. Softer customer demand and efforts to reduce costs led firms to readjust their workforce numbers. <\/p>\n
Regarding prices, the survey showed that input prices grew at the fastest rate since January. Greater operating expenses were partly passed on to clients. <\/p>\n
Business sentiment hit its lowest level since September 2022 due to the sluggish global economic climate. <\/p>\n