The purchasing managers' index (PMI) for China's manufacturing sector came in at 49.2 in October, down from 50.1 in September, data from the National Bureau of Statistics (NBS) showed on Monday.

Affected by the domestic sporadic COVID-19 cases and other factors, both factory and service sector activities shrank in October, indicating that the foundation for China's economic recovery needs to be further consolidated, said Zhao Qinghe, a senior NBS statistician.

The official gauge missed economist forecast at 50.0 for the month as polled by Reuters. A reading above 50 indicates expansion in activities, while a reading below reflects contraction.

The production index and new order index declined 1.9 and 1.7 percentage points from September to 49.6 and 48.1 respectively, reflecting suppressed production and market demand.

Large corporations maintained the expansion momentum while small and medium-sized ones were still mired in contraction with elevated pressure on production and operation.

Despite headwinds, most industries expressed optimism for future operations. The production and operation activity expectation index came in at 52.6. Among the 21 industries surveyed, 13 land in the expansion range.

The non-manufacturing business activity index declined 1.9 percentage points to 48.7 in October, reflecting a slowdown in the recovery.

However, the construction industry is a bright spot with the business activity index standing at 58.2 and optimism of the sector growing.

The official composite PMI, which covers both manufacturing and services activities, edged down to 49 in October.

China's central bank governor reiterated on Friday that the bank will step up financial support for the real economy.

The governor also revealed that a special loan of 200 billion yuan was arranged to facilitate real estate delivery this year and to ease homebuyers' frustration.

China has introduced a host of measures to shore up the economy this year ranging from fiscal and monetary policies to trade facilitation. China's third-quarter GDP grew by 3.9 percent compared with a year earlier, beating market expectations.