China's factory output slipped to its lowest level in 8 months as Trump's trade-war malaise sets in
- China's factory output in October fell to its lowest level since February, according to official data, as the trade war continues to hit Chinese output.
- A lack of new export orders led the malaise, pointing to further slowdowns in export growth.
- Earlier this month, China's GDP fell to its lowest level on record.
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The trade war is continuing to hit China hard, as manufacturing output fell to its lowest point since February, according to official Chinese data.
October's PMI was just 49.3, missing expectations, according to Bloomberg's survey of economists, which was 49.8. The figure was below September's 49.8.
PMI is a tool used by economists to assess how the economy is faring, by surveying managers across various industries - any figure below 50 is seen as decline.
"The main driver was a sharp drop in the output component but new orders softened too," according to Julian Evans-Pritchard, China economist at Capital Economics.
He added that "a decline in new export orders points toward a further slowdown in export growth," and that likely industrial profits in the country worsened this month.
Non-manufacturing PMI declined to a three-year low of 52.8, and despite a "bright spot" in construction activity, China's economy looks to be slowing.
Earlier this month China's GDP fell to its lowest level on record, growing at 6% in the last quarter as the trade war continued to hit the Chinese economy.
"Pressure on economic activity should intensify in the coming months," Evans-Pritchard said in an email at the time. He added that "cooling global demand will continue to weigh on exports, fiscal constraints mean that infrastructure spending will wane in the near term, and the recent boom in property construction looks set to unwind."
