China's manufacturing PMI falls to 49.3% in October as suppliers deliver faster

China's manufacturing purchasing managers' index (PMI) was 49.3% in October, 0.8 points below September, according to the National Bureau of Statistics (NBS) as reported by Jiemian. A reading below 50 signals contraction.

By company size, large firms stood at 50.2%, still above the 50 line. Medium-sized firms fell to 48.4% and small firms to 47.5%, declines of 1.3 and 1.4 points.

Among components, output fell to 49.8% (−1.9 points) and new orders to 49.4% (−1.1 points). Raw-material inventories rose to 48.4% and employment was flat at 48.4%. The supplier delivery-time index was the only one above 50, at 50.2%, which the NBS reads as faster raw-material deliveries.

Outside manufacturing, the non-manufacturing business activity index was 49.7%, with construction at 48.0%. The composite output PMI fell to 49.7%, 1.0 point below September.

CSP take: weaker demand and faster supplier deliveries usually give buyers more room to negotiate lead times and prices, especially with small and medium factories, which fell the most. This reading is ours, not the NBS's.