China’s factory declined more than expected in October amid weak consumer demand and a tariff war with Washington.
A monthly index published Thursday by an official trade group, the China Federation of Logistics & Purchasing, declined to 49.3 from September’s 49.8 on a 100-point scale on which numbers below 50 show activity contracting.
New export orders and other indicators declined.
Chinese economic growth has hurt by weakening consumer demand as shoppers, jittery over the trade war and possible job losses, put off purchases of cars and other big-ticket goods.
Exporters have been hurt by President Donald Trump’s tariff hikes on Chinese imports in a fight over Beijing’s technology ambitions and trade surplus bu the impact on the overall economy has been limited.