China’s Manufacturing PMI Slips Into Contraction, While High-Tech Sector Expands
China’s official manufacturing PMI fell to 49.3 in October from 50.1 in September, signaling a mild contraction as it dipped below the 50-point mark. However, the high-tech manufacturing sector remained robust, expanding for the 21st consecutive month with a PMI of 51.3.
According to officials and experts, the latest data suggests some moderation in activity at the start of Q4, reinforcing expectations for stronger policy implementation. Huo Lihui, a statistician with the National Bureau of Statistics, attributed the October decline to forward demand and a volatile global environment.
"Manufacturing activity moderated, but new growth drivers... provided a stabilizing force," said Wen Tao, an analyst at the China Logistics Information Center. High-tech and equipment manufacturing sectors continued their expansion, with PMIs of 51.3 and 50.6 respectively.
Wang Qing, from Orient Golden Credit Rating International, highlighted the strong performance of these sectors, driven by favorable policies and robust supply and demand. Zhongji InnoLight, a high-speed optical module manufacturer, reported a significant increase in net profit, emphasizing the continued demand for their products in the global AI infrastructure buildout.
Despite the slight dip, manufacturers remain optimistic, with the subindex for future expectations holding above 53 for nine consecutive months at 53.4 in October.