China factory activity slows in October

Textile and clothing

Chinese manufacturing expansion slowed in October after two consecutive months of acceleration, official data showed today, as weak demand weighed on the world's second-largest economy.

The manufacturing purchasing managers' index (PMI), a gauge of factory conditions, stood at 51.6 in October, the National Bureau of Statistics (NBS) said, compared to 52.4 in September, which marked a five-year high.

Anything above 50 is considered growth while a figure below that number points to contraction. Analysts surveyed by Bloomberg News had expected a reading of 52.

October's week-long National Day holiday slowed down production and new orders growth, and energy and pollution- intensive industries shifted peak load or reduced production due to tightened environmental controls in some regions, NBS analyst Zhao Qinghe said in a statement.

China has implemented tight controls on heavy industry in hopes of improving the country's notoriously bad air quality, which typically worsens in the winter months.

But "the manufacturing sector continues to maintain an expanding momentum", he said.

The figure came after China registered slightly slower growth in the third quarter, with the economy expanding at 6.8 percent.

Analysts say it sets the ground for the government to tackle long-term economic issues such as soaring debt and property-led growth.