TSX drops after Canadian index edges higher in prior session
Investing.com-- Chinese manufacturing activity shrank more than expected in October, official purchasing managers index data showed on Friday, as weak local demand and slowing economic momentum continued to chip away at the sector.
Manufacturing PMI fell to 49.0 in October, missing expectations of 49.6 and falling from the 49.8 print seen in September.
A reading below 50 indicates contraction, with China’s manufacturing sector now having contracted for a seventh consecutive month.
The PMI data, which is a sentiment-based survey, showed Chinese manufacturers remained largely cautious amid sluggish domestic demand and still high U.S. trade tariffs on exports.
Friday’s data underscored the need for more economic support from Beijing, as China grapples with sustained deflation, weak private spending and dwindling private investment.
Several officials pledged to dole out more stimulus measures in recent weeks, but no clear details were provided.
The PMI data also comes just a day after a meeting between Chinese President Xi Jinping and U.S. President Donald Trump, where the two agreed to ease some trade tariffs and restrictions. But U.S. tariffs on Chinese exports still remained close to 50%.
Business activity outside manufacturing improved slightly, with the non-manufacturing PMI rising to 50.1 in October as expected.
But weakness in manufacturing saw China’s composite PMI-- a gauge of overall business activity in the country-- fall to 50.0 in October from 50.6. The print was now on the cusp of entering contraction territory.