China’s manufacturing sector grew slower than expected in October, signalling weakening momentum in the world’s second-largest economy. The RatingDog China General Manufacturing PMI slipped to 50.6 from 51.2 in September, just above the 50-point mark separating growth from contraction. Economists surveyed by Bloomberg had expected a reading of 50.7.
The report showed new export orders fell at the fastest pace since May, while business optimism dropped to a six-month low. “Heightened trade uncertainty in October caused new export orders to fall sharply,” said Yao Yu, founder of RatingDog. “Uncertainty in the external environment also slowed output growth.”
Tensions between China and the US escalated last month over export controls, though a recent agreement between Presidents Donald Trump and Xi Jinping eased immediate concerns.
Despite relief from lower US tariffs, many exporters remain cautious, fearing future trade setbacks. After strong growth in early 2025, analysts warn China’s economy may lose steam as front-loaded exports decline.
The official manufacturing PMI also showed continued weakness, marking the longest slump in nine years. Still, RatingDog noted faster job creation, driven by steady new work inflows in smaller export-focused firms.
