FX.co ★ China’s Composite PMI Slips Back Below 50 in October, Signalling Renewed Contraction

China’s Composite Purchasing Managers’ Index (PMI) retreated into contraction territory in October 2026, falling to 49.7 from 50.7 in September, according to data updated on 31 October 2026. The move marks a reversal from last month’s level, which had just edged back above the 50-point threshold that separates expansion from contraction.

The October reading at 49.7 suggests that overall activity across China’s manufacturing and services sectors softened during the month after a modest improvement in September 2026. While the decline is relatively small in absolute terms, slipping below 50 indicates that aggregate business conditions worsened on a month-to-month basis.

Investors and policymakers will be watching subsequent releases closely to gauge whether October’s dip is a brief setback or the start of a more persistent slowdown in China’s composite output momentum.