China's manufacturing sector returns to contraction after a month... PMI at 49.3

[Financial News] China's manufacturing Purchasing Managers' Index (PMI) for October came in at 49.3, marking a return to economic contraction after one month.
According to National Bureau of Statistics of China (NBS) on the 31st, the manufacturing PMI for October was 49.3, down 0.8 points from 50.1 the previous month.
The PMI is an indicator of economic trends based on surveys of companies' purchasing managers about new orders, production, employment and inventories. A reading above 50 indicates expansion, while one below 50 indicates contraction.
China's manufacturing PMI was below the threshold in July (49.2) and August (49.8), then moved into expansion in September, only to return to contraction a month later.
By company size, the PMI for large companies fell 0.4 points from the previous month to 50.2, but continued to show expansion. The index for medium-sized companies fell 1.3 points to 48.4, while that for small companies dropped 1.4 points to 47.5.
Among the detailed indicators, the production index fell 1.9 points from the previous month to 49.8, showing that manufacturing activity had slowed.
The new orders index stood at 49.4, down 1.1 points from the previous month.
In particular, the new export orders index fell to 48.7 from 50.0 the previous month, indicating that export demand had contracted.
By contrast, the raw materials inventory index, which measures stocks of major raw materials, rose 0.2 points from the previous month to 48.4. The employment index, which reflects employment conditions, also remained unchanged from the previous month.

[email protected] Kang Gu-gwi Reporter