China reported slower manufacturing growth in October for the second straight month as the country's trade war dispute with the U.S. continues.
Official manufacturing Purchasing Managers' Index (PMI) was 50.2 — lower than the 50.6 that analysts expected in a poll. The official manufacturing PMI was 50.8 in September, the lowest since July 2016, with the production and new orders sub-indices also falling from a month ago. New export orders contracted for the fifth straight month.
A reading above 50 indicates expansion, while a reading below that signals contraction.
October is the first full month after the latest U.S. tariffs went into effect. Washington and Beijing slapped additional tariffs on each other's goods on Sept. 24.
One Chinese statistics bureau official wrote in an analysis of the data that manufacturing activity in October was hit by long national public holidays and a "complex and variable external environment" that caused "fluctuations" in demand and supply.
Official services PMI also fell to 53.9 in October from 54.9 in September.
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