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Investing.com-- China’s manufacturing sector grew less than expected in October, private purchasing managers index data showed on Monday, as the sector grappled with cooling prices and a deteriorating economic outlook.
The RatingDog manufacturing PMI, formerly the Caixin PMI, fell to 50.6 in October from 51.2 in the prior month. The print was also weaker than expectations of 50.7.
But the print showed expansion in China’s manufacturing sector, in contrast to government PMIs from last week which showed a contraction. The Ratingdog data differs from the government reading on two key fronts– wherein the government data covers larger state-run businesses in the North, the Ratingdog data covers smaller, private firms in the south.
Investors use both prints to gain a broader view of the Chinese economy.
But the outlook for the Chinese economy remains uncertain, especially as the country grapples with steady disinflation and weak private spending. These two factors have also been key weights on the manufacturing sector.
Focus is now on Beijing’s 15th five-year plan, which is widely expected to outline Beijing’s plans for stimulus and more economic support.
A recent U.S.-China trade deal helped spur some optimism over the Chinese economy, especially as the U.S. agreed to lower its trade tariffs on the country. But overall U.S. tariffs on China still remained close to 50%, presenting sustained headwinds for local exporters.