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.