China's factory activity slows on weaker export orders

China's factory activity expanded at a slower pace for the first time since July, a private survey showed, as weaker overseas orders call into question the outlook for the country's export-led expansion.

The RatingDog China manufacturing purchasing managers index slipped slightly to 52 from 52.1 in September, according to a statement on Monday. The reading, which was above the 50 threshold separating expansion from contraction, matched the median forecast of economists surveyed.

While output expanded at the fastest since April, growth in new export orders slipped to a three-month low. Business confidence eased from September, with average export charges declining for the first time in nearly a year.


Yao Yu, founder of RatingDog, said in the statement that anecdotal evidence suggested greater volumes of new work from customers in Asia, Europe and Africa. At the same time, the pace of expansion in new export orders "was modest, with growth slowing among consumer and intermediate goods makers while accelerating for investment goods firms," he said in the statement.