China's economic growth is sluggish, and the manufacturing and non-manufacturing PMIs simultaneously fell into the contraction range

The National Bureau of Statistics of China announced on the 30th that the manufacturing purchasing managers index (PMI) fell to 49.3 in October from 50.1 in September, falling into the tight range below the 50 line of prosperity and contraction, and lower than the 49.9 expected by Bloomberg economists. China's factory activity slowed in October, underscoring the challenges policymakers face as they try to sustain an economic recovery to ensure they meet this year's growth targets.

Bloomberg reported that the deterioration in relevant data showed that factory activity in the world's second-largest economy gradually lost growth momentum at the beginning of the fourth quarter after three months of modest rebound. After launching a new wave of dedicated stimulus measures in recent weeks, Beijing may be under pressure to provide more industrial support to ensure economic growth can meet the authorities' target of 4.5% to 5%.

In terms of enterprise scale, the manufacturing boom has declined across the board. The PMI of large enterprises was 50.2, down 0.4 percentage points from the previous month. The PMIs of small and medium enterprises were 48.4 and 47.5 respectively, down 1.3 and 1.4 percentage points from the previous month, and fell into the contraction range.

The weak situation extended to both supply and demand, with the manufacturing production index falling 1.9 percentage points to 49.8, indicating a slowdown in manufacturing production activities. The new orders index fell 1.1 percentage points to 49.4, indicating a decline in demand in the manufacturing market.

The high-tech manufacturing PMI 51.3 shows that despite the contraction of overall manufacturing activity, this category still maintains expansion.

Chinese official data also showed that the non-manufacturing PMI, which reflects the prosperity of the construction and service industries, fell to 49.7 from 50.2 in September. Among them, the construction business activity index was 48, down 2.3 percentage points from the previous month. The service industry business activity index was 50, down 0.2 percentage points from the previous month.

The new orders index, which reflects the demand boom in the non-manufacturing market, fell 2.1 percentage points to 44.4. Among them, the new orders index for the construction industry fell 5.7 percentage points to 40, showing that China's housing market is still very sluggish. The new orders index for the service industry fell 1.5 percentage points to 45.2.