China's Factory Activities Underperformed Expectations in October.

Manufacturing Activities in China Fell Below Expectations in October

China's factory activity growth, as of October 2023, did not meet market expectations. This situation is attributed to a significant decline in new export orders due to increasing trade tensions with the United States.

PMI Index Showed a Decline

The S&P Global compiled RatingDog China General Manufacturing PMI index decreased from 51.2, which was a six-month high in September, to 50.6 in October. This result fell below the 50.9 level expected by analysts.

Sharp Decline in New Export Orders

New export orders experienced the fastest decline since May, while new business volumes and production showed slower growth compared to the previous month. Business confidence continues at its lowest level in six months. According to the survey, firms expressed the lowest optimism in the past six months when assessing their production outlook for the upcoming year.

Expansion Signals in Employment

On the other hand, the employment indicator in factories recorded expansion for the first time since March 2023, reaching its highest level since August 2023. This situation indicates that cost pressures have eased and production plans are being reevaluated.