China’s factory activity slips as new export orders weaken

BEIJING (AP) — China’s factory activity contracted in October, reversing the previous month’s reboujnd. The National Bureau of Statistics reported Saturday that the official purchasing managers’ index fell to 49.3, down from 50.1 in September. A PMI below 50 indicates contraction. Key subindexes, like new export orders and production, also showed declines. Chinese companies have been exporting more due to weakened domestic demand, but this has led to complaints from trading partners about trade deficits. The European Union has been particularly vocal with demands to rebalance trade. Some economists have predicted China’s exports will remain strong for the rest of this year despite ongoing trade tensions.