China’s Oct services PMI slips to near 7-year low
China’s official manufacturing PMI, meanwhile, remained stable on a monthly basis in October, posting a reading of 49.8. However, the October reading fell below market expectations calling for a reading of 50.0. These figures showed that Chinese factories are still under pressure from sluggish domestic and external demand. The data revealed that new factory export orders contracted for a thirteenth straight month in October while the sub-index for new orders edged up slightly to 50.3 when compared to September’s 50.2.
According to a separate report by Caixin and Markit Economics, China’s manufacturing PMI posted its eighth straight monthly decline in October. However, the contraction lost momentum on the back of a pick-up in new export orders, which expanded for the first time since June. The Caixin/Markit Economics China PMI edged up to 48.3 in October from 47.2 in September.
China’s economy grew 6.9% in the third quarter, falling below 7% for the first time since the first quarter of 2009. The Chinese government has lowered interest rates six times since November and cut reserve requirements for banks four times this year in order to spur the slowing economy.
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