China factories reel from trade chill
China’s factory activity contracted for the seventh consecutive month in October, official data showed Friday, as trade tensions ahead of high-level talks between President Xi Jinping and US President Donald Trump dampened sentiment. The official manufacturing Purchasing Managers’ Index stood at 49.0, below the 49.6 forecast and down 0.8 points from September, according to the National Bureau of Statistics.
Statistician Huo Lihui cited a more complex global environment and the National Day holiday’s “Golden Week” as factors behind the slowdown. He noted the economy remained generally stable despite the dip. The October reading matched April’s 49.0, the lowest this year, which marked the beginning of the current stretch of contraction tied to US-China trade volatility.
The two leaders met on Thursday in South Korea. Trump said he would cut a 20 percent tariff on Chinese goods in half, while Xi agreed to pause rare-earth export curbs for one year and restart US soybean purchases. Separately, China’s non-manufacturing PMI edged up to 50.1 in October from 50.0 in September, meeting expectations.
