China's manufacturing activity expands for 11th consecutive month in October
China's manufacturing PMI edged down to 52 in October, marking the 11th straight month of expansion. New orders grew for 17 months, but exports slowed. Firms cut prices amid competition, while input costs rose for 16 months. Business confidence fell to a nine-month low.
China's manufacturing sector expanded for the 11th consecutive month in October, according to a survey by S&P Global. The Purchasing Managers' Index (PMI) edged down to 52 from 52.1 in September, but remained above the 50-point threshold that separates expansion from contraction, marking the longest improvement cycle since mid-2021.
New orders grew for the 17th straight month, driven by new product launches, capacity expansion and business development. New export orders rose for the fourth month in a row, with companies reporting increased business from clients in Asia, Europe and Africa. However, the pace of export growth slowed to a three-month low.
Factory-gate prices were cut for the second time in three months, as intense competition forced firms to offer discounts. The slowdown in cost increases gave companies room to lower prices. Export costs fell for the first time in nearly a year. Raw material purchase prices rose for the 16th consecutive month, driven by higher costs for metals and fuel, though the pace slowed compared to September and was below the year's average.
To cope with rising new orders and production expansion, companies increased purchasing activity to its strongest level in eight months. Firms added only a small number of staff, which had limited effect on easing capacity pressure. Business confidence remained positive but fell to a nine-month low, with some companies expressing concerns over high costs and intensifying competition.