China's factory activity shrinks for seventh straight month

BSS
Published On: 31 Oct 2025, 09:00

BEIJING, Oct 31, 2025 (BSS/AFP) - China's factory activity shrank for a seventh straight month in October, official data showed Friday, as trade uncertainty ahead of talks between President Xi Jinping and his US counterpart Donald Trump weighed on the economic powerhouse.

The manufacturing Purchasing Managers' Index -- a key measure of industrial health -- came in at 49.0, marking another contraction, according to the National Bureau of Statistics (NBS).

The reading missed a forecast of 49.6 by a Bloomberg survey of economists and was down 0.8 percentage points from the previous month.

Manufacturing in October slowed "due to factors such as... the more complex international environment", said NBS statistician Huo Lihui in a statement.

Huo also attributed part of the slowdown to China's "Golden Week" National Day holiday at the start of the month, a period that usually sees slower factory activity.

The country's overall economic output "remained generally stable", he added.

October's reading equalled the lowest level of factory activity this year, matching the 49.0 figure in April.

That month kicked off a streak of contraction as factories dealt with ebbs and flows of a US-China trade war.

The leaders of the world's two largest economies met on Thursday in South Korea for high-stakes trade talks.

Trump said he would halve a 20-percent tariff on Chinese goods and Xi agreed to suspend certain export restrictions on the key rare-earth sector for one year.

China would also resume purchases of US soybeans after orders came to a halt this harvest season, according to Trump.

Official data on Friday also showed that the non-manufacturing PMI, which measures activity in sectors including services and construction, ticked up to 50.1 in October from 50.0 in September, on par with a Bloomberg forecast.

 

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