China's manufacturing activity contracts in October as PMI falls to 49.3

Manufacturing activity in China moved back into contraction in October 2026, according to the official purchasing managers' index (PMI). The manufacturing index fell to 49.3 points from 50.1 in September, according to data released on October 31.

A reading below 50 means more surveyed firms reported deteriorating rather than improving conditions compared with the previous month. The PMI indicates the direction of activity; it does not measure a percentage decline in industrial output.

Orders point to weakening demand

The index of new export orders remained below the 50-point threshold, while the non-manufacturing index also dropped to 49.7. The figures signal softer momentum in the world's second-largest economy at the start of the final quarter of the year.

The reading matters to global markets because Chinese industry is a major supplier of manufactured goods and raw materials. However, a single monthly index cannot, on its own, predict price changes in Bulgaria or elsewhere in Europe.

Sources: Bulgarian News Agency (BTA), October 31, 2026; Reuters, October 31, 2026.

Photo: Simon Kadula / Unsplash — illustrative image of a robotic production line, not taken in China.