China’s manufacturing sector expanded at a slower pace in October, the latest survey from the National Bureau of Statistic showed on Wednesday.
The country’s official Purchasing Managers’ Index (PMI) fell to 50.2 in October from 50.8 in September, while markets previously expected the reading to ease slightly to 50.6.
The non-manufacturing PMI also slipped to 53.9, missing forecasts for 54.6 and down from 54.9 in September.
On September 24, the U.S. and China slapped additional tariffs on each other's goods. Earlier this week, U.S. President Donald Trump threatened to hit China with more duties by December.
"All the numbers from China's PMI release today confirm a broad-based decline in economic activity," said Raymond Yeung, chief economist for China at ANZ in a client note.
"Besides an expected reserve requirement ratio (RRR) cut next January, we expect future supportive policy actions to be measured. The government's priority is to avoid a financial blow-up,” Yeung added.
Private surveys by Caixin and IHS Markit focusing on small and mid-sized firms will be released on Thursday.
