China’s manufacturing activity has declined for the first time in six months, with a drop of 0.2% in October, according to data released by the country’s National Bureau of Statistics (NBS). This contraction marks a reversal from the previous month’s growth of 1.4%, which was driven by a surge in exports and imports. The decline is attributed to weak domestic demand and a slowdown in foreign trade.
The Chinese manufacturing sector has been showing signs of weakness for several months, with export orders declining in recent weeks due to increasing global competition and rising production costs. This decline is expected to have far-reaching implications for the global economy, particularly for countries that rely heavily on China’s exports.
The NBS data also showed a drop in industrial production, which fell 0.1% in October from the previous month. This decline is consistent with the overall trend of slowing economic growth in China, which has been marked by declining investment and consumption.
Overall, the contraction in China’s manufacturing activity is a significant development that could impact global trade and economic growth. As one of the world’s largest exporters, China plays a crucial role in shaping international trade patterns, and any changes to its manufacturing sector can have far-reaching consequences.
Source: https://www.ft.com/content/48c27da5-6d54-48d8-a302-2fe8a976cba3