China’s manufacturing PMI slowed down in October

20 November 2017

China’s manufacturing sector expanded at a slower but stable pace in October, according to official data released earlier in the week. The manufacturing purchasing managers’ index (PMI) came in at 51.6, moderating from 52.4 in September and 51.7 in August, according to the National Bureau of Statistics (NBS).

After a strong performance in the first three quarters, data released by the National Bureau of Statistics (NBS) showed growth of factory output, investment and consumption in October all slowed a notch from the previous month.

Industrial value-added output expanded 6.2% year on year in October, slowing from 6.6% growth in September. Retail sales of consumer goods grew 10%, down from 10.3% in September. In the January-October period, fixed-asset investment grew 7.3% year on year, down 0.2 percentage points from the January-September level.

NBS data showed the country’s economic rebalancing and industrial upgrades continued apace, injecting vitality into the economy. Excess capacity cuts have exceeded targets in the bloated steel and coal sectors, while advanced capacity steadily expanded its share.

Despite the slowdown in the October indicators, employment remained stable. Nearly 12 million new jobs were created in cities during the January-October period, already exceeding the annual target of 11 million.