MNI DATA BRIEF: China Mfg Slows Further as PMI Nears 2Y Low

The China Purchasing Managers' Index (PMI) slid to 49.2 in October from September's 49.6, further falling into contraction for the second month and was the weakest since February 2020, as an electricity crunch and high commodity prices took their toll, data from the National Bureau of Statistics on Sunday showed.

Both production and demand weakened, with the production and new order sub-index sliding to 48.4 and 48.8, respectively, down from 49.5 and 49.3 in September. New export orders however rebounded 0.4 pps to 46.6.

The non-manufacturing service index fell to 52.4 from the previous 53.2 as the week-long October national holiday failed to spur consumer spending.

Business activity indices of accommodation, catering, and entertainment were at a high level above 55, those of the railway and air transportation also stood above the break-even 50, though the expansions were slower than previous years as the Covid-19 pandemic limited travels, said the government data agenda.