China’s manufacturing activity contracted in October, according to a closely-watched private gauge, dashing hopes for a recovery.
The Caixin purchasing managers’ index for manufacturing came in at 49.5 for the month, well below the 50.8 forecast from analysts polled by Reuters.
The reading puts the sector back into contraction territory after two consecutive months of expansion, which some economists had pointed to as the first signs of a belated turnaround in China’s economic fortunes.
On Tuesday, the official PMI, which places greater emphasis on larger, state-owned groups, also missed estimates and slipped back into contraction territory at 49.5.
