China's manufacturing PMI at 49.0 in October, holiday effects weigh

China's factory activity slightly contracted in October as holidays and external pressures weighed on production, but signs of structural improvement persisted, official data showed on Friday.

The official manufacturing purchasing managers' index (PMI) came in at 49.0, down from 49.8 in September, according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP).

He Hui, vice-president of the CFLP, said the fall was partly seasonal, citing the impact of the National Day and Mid-Autumn Festival holidays, alongside external factors. The trend of economic restructuring and improvement remains unchanged, he added.

High-tech manufacturing, equipment manufacturing and consumer goods sectors stayed in the expansion territory, with PMIs of 50.5, 50.2 and 50.1, respectively, outperforming the broader index.

Huo Lihui, chief statistician of the Service Industry Survey Center at NBS, said three key industries continued to expand and business confidence remained firm, with the production and business expectation index still above the 50-point mark.

The non-manufacturing business activity index rose to 50.1 from 50.0 in September, while the composite PMI output index was flat at 50.0, indicating overall stability in China's business activity.