China’s factory activity unexpectedly contracted in October

BEIJING: China’s manufacturing activity unexpectedly contracted in October, an official factory survey showed on Tuesday, casting a cloud over recent indicators that showed a nascent recovery in the world’s second-largest economy.

The official purchasing managers’ index (PMI) fell to 49.5 in October from 50.2, dipping back below the 50-point level demarcating contraction from expansion.

Yuan eases as China’s factory activity unexpectedly contracts

The reading missed a forecast of 50.2. Policymakers have since June unveiled a raft of measures to shore up growth, including modest interest rate cuts, increased cash injections and aggressive fiscal stimulus.

However, analysts say more policy support may be needed to ensure the economy reaches Beijing’s annual growth target of about 5%.