China's Economy Faces Mixed Signals: Manufacturing Slump, Services Stabilize

With 49.0 in October 2025 from 49.8 in September, China's manufacturing PMI fell to a six-month low and its seventh straight month of contraction. This was less than the market estimate of 49.6, pointing to continued difficulties in factory activity. With large, middle, and small businesses still below the 50-point threshold separating growth from contraction, weakness impacted all company sizes. These findings point up structural problems, including fading local demand, global market pressures, and persistent effects of trade tensions.

Rising to 50.1 in October from 50.0 in September, the Non-Manufacturing PMI showed some resilience and pointing to some growth in services and construction. Though its limited character emphasizes a continual fragile recovery, this little improvement points to stability in the consumer-oriented industries. The Composite PMI fell to 50.0, therefore indicating general stagnation in output and activity among Chinese companies.

Economists note that sustained weakness in the manufacturing sector emphasizes the need for stronger government assistance, particularly in the context of weak local demand and deteriorating worldwide commerce circumstances. Although some industrial statistics, like September's industrial output, reveal resilience, analysts contend that state-owned businesses are propelling much of the expansion instead of a more general market rebound. Additional stimulus policies, especially aimed at private companies and consumer demand, may be necessary to support a recovery following the epidemic in the next months.