China Factory Activity Contracts Again as Export Orders Dry Up

China’s official and private-sector manufacturing gauges showed contraction or stagnation in October as external demand softened and export orders weakened. Firms reported muted new orders, persistent capacity under-utilisation and cautious hiring plans. The data underscore ongoing recovery challenges in the world’s second-largest economy despite policy support, and raise the risk of weaker commodity demand globally. Analysts say continued stimulus and structural reforms will be needed to return manufacturing to sustainable expansion and shore up regional trade partners.