China's factory activity contracts as export orders falter
China's official manufacturing index fell to 49.3 in October, dropping below 50 and signalling factory contraction.
China's manufacturing index fell to 49.3 in October, down from 50.1 in September. Below 50 means factories are shrinking.
Export orders fell to 48.7 from 50.0. Production dropped to 49.8 from 51.7.
Chinese firms ship more goods abroad to find buyers. Domestic demand is weak because of trouble in the property sector.
Trading partners, including Europe, complain about China's big trade surplus. Many impose tariffs and limits on cheap Chinese imports.
The EU reported a trade deficit with China that hit $US1.1 billion a day in 2025.
- 49.3
- October PMI
- 48.7
- Export orders fell to
- US$1.1 billion
- EU daily trade deficit with China 2025
- 50.1 in September
- Previous month PMI
Why it mattersContracting Chinese factory output could ease global inflation and reduce trade tensions, but also signals economic weakness in the world's second-biggest economy.
AustraliaAustralia's iron ore and commodity exports to China could face softer demand if the contraction persists beyond October.
✓ Claims checked against the source. checked 3 h ago
