News

31 Oct 2025

China enters its longest period of industrial contraction in more than nine years

China’s manufacturing activity contracted further in October, marking its longest period of decline in more than nine years, as the Chinese economy entered a deeper slowdown in the final quarter of the year.

The official manufacturing Purchasing Managers’ Index (PMI) fell to 49 in October, down from 49.8 in September, the National Bureau of Statistics (NBS) said on Friday. Economists surveyed by Bloomberg had forecast a reading of 49.6.

The non-manufacturing activity index, which measures activity in the construction and services sectors, edged up slightly to 50.1 after falling to the 50-point mark in September, which separates growth from contraction.

Seasonal factors likely influenced the figures, as the national holiday in October 2025 was longer than the previous year.

The slowdown in manufacturing activity was partly due to an eight-day public holiday and to “the increasingly complex global environment,” said Hu Lihui, a statistician with the NBS, in a statement accompanying the data release. “Both manufacturing output and market demand declined,” she added.

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