The RatingDog PMI showed 11 straight months of expansion, but price cuts and falling confidence signal lingering headwinds for China‑linked assets.

China’s private‑sector manufacturing gauge posted a PMI of 52.0 for October, edging past the 51.6 consensus and barely slipping from September’s 52.1. The reading marks the 11th consecutive month above the 50‑point expansion threshold, the longest streak since mid‑2021, and indicates the fastest output growth since April, driven primarily by investment‑goods producers.

Strong activity, weaker pricing

• Output expanded at the quickest pace in six months, with solid gains across consumer, intermediate and investment goods.
• New orders rose for a 17th straight month, though export‑order growth slowed to a three‑month low.
• Output and export prices fell – the second price decline in three months and the first export‑price drop in nearly a year – as fierce competition forced firms to discount.

Cost pressures and confidence

• Input‑cost inflation eased, but metals and fuel still pushed prices up, albeit slower than in September.
• Purchasing accelerated to the fastest rate since February and supplier delivery times shortened for the first time in eight months.
• Business confidence slipped to a nine‑month low, with firms citing higher input costs and intense competition as key worries.

What traders are watching

• Whether the yuan, Australian dollar and industrial metals find support from the upbeat private PMI despite the official PMI’s contraction reading of 49.3.
• Further stimulus cues from Beijing as the gap between the export‑tilted private survey and the broader official index widens.
• Upcoming data on Chinese export volumes and input‑cost trends that could confirm or challenge the current disinflationary bias.

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This article is compiled from international market news for information only. It is not investment advice.