China Factory Activity Contracts in October for Third Time in Four Months as Export Orders Weaken

China's manufacturing sector slipped back into contraction in October, recording its fastest pace of decline in three months and marking the third contraction in the past four months, according to official PMI survey data released Friday. The retreat reverses a fragile recovery in September, when the official manufacturing PMI had just edged back into expansionary territory at 50.1 after months of weakness. Weakening new export orders were a primary driver of the October pullback, underscoring how sluggish global demand and ongoing trade pressures continue to weigh on Chinese industry.

The data amplified a broader sense that China's economic recovery is losing momentum. The deterioration in factory activity comes as policymakers in Beijing face pressure to deliver additional stimulus, and as trade frictions with major partners remain unresolved, with the future of EU-China trade relations still uncertain.

Separately, China secured a substantially discounted price on Russian natural gas imports, reflecting a shift in negotiating leverage as Moscow grows increasingly dependent on Beijing as a buyer. Global markets sold off sharply on the day, with stocks posting their worst session since June, driven by a technology rout.