In October production grew at the slowest rate in the last four months in China and businesses went on shedding workers regardless of a small increase in internal and foreign orders, as today’s survey demonstrated.
Strict anti-air pollution measures in winter could be an additional load for companies that would make them cut output even more in the next few months, said one of economists.
The Caixin/Markit Manufacturing PMI kept at the mark of 51.0 last month, the same as it had been in September and it goes well with analysts’ predictions of a slow improvement in working conditions.
However, the output sub-index dropped to 50.8 from 52.1, coming close to 50, which is the border dividing growth from shrinking on a monthly basis, with prospects-related confidence for the next year waning to the lowest but one since August of the last year.
This report came after a Tuesday’s state survey revealing a sudden slowdown in the country’s manufacturing sector linked to a subsiding housing market and a clampdown on smog, becoming the cause of production suspending or reducing at a number of factories and steel plants.