China Faces Manufacturing Slowdown in October: Key Insights on Economic Impact and Currency Trends
China Manufacturing Growth Slows in October Amid Export Weakness; AUD/USD Experiences Slight Dip
By Bob Mason | Published: November 3, 2025, 02:33 GMT
China’s manufacturing shows lower speed in October. Export demand drops hard. Domestic buying keeps up, yet export work suffers. The RatingDog China General Manufacturing Purchasing Managers’ Index (PMI) moves from 51.2 in September to 50.6 in October. This number stays above the 50 mark that marks growth as opposed to decline.
Key Highlights from October Manufacturing Data
• The PMI drops to 50.6. The number falls below economist guesses, which had been 50.9.
• Export orders fall. New export orders hit the lowest level since May.
• Domestic demand stays strong. New business from local buyers grows for the fifth month in a row.
• Factory jobs rise. Employment climbs at the fastest speed in more than two years.
• Input costs slow down. The rise in input prices comes with less speed than in September.
• Export prices cut. For the first time in six months, manufacturers lower export prices as they face tougher global rivals and low global demand.
Context and Expert Insight
China’s makers deal with two forces. Domestic demand shows strength, while export orders fall in a weak global market. The loss in export work hints at problems in the world economy.
Yao Yu, the founder of RatingDog, said,
"China Manufacturing PMI slowed in October. Out of all parts, only the job numbers climbed while others lost ground."
He stayed careful but hopeful. He noted that Beijing now follows a new plan to steady the economy and boost local sales. He added that new help from the government might push up factory work in the coming months.
Market Reaction: AUD/USD and Hang Seng Index
After the PMI news, markets moved fast:
• AUD/USD: After the PMI report, the Australian dollar went from $0.65416 to $0.65444 but later fell back near $0.65418 by 0.01%. The close trade link with China makes Australia worry over its economic path. Some traders now expect a rate cut by Australia’s central bank in November.
• Hang Seng Index: Hong Kong’s main index went up. It moved from 25,928 to 26,039 minutes after the message. Later, it ended up 0.51% higher at 26,038. Some hope that a deal between the US and China will help Chinese sellers soon.
Economic and Policy Outlook
Although factory work still grows, slower output and falling export orders call for care. China’s central bank and Beijing may use fresh measures to keep up the work as the world market stays weak.
Markets now watch these next updates:
• October Trade Data (due November 7): Experts wait to see numbers in imports and exports that may show more on global demand.
• Consumer Price Index (due November 10): New figures here will shape views on China’s money plans.
Strong trade numbers mixed with easing price falls might raise interest in Mainland and Hong Kong stocks and in currencies linked to raw materials, such as the Australian dollar.
Conclusion
China’s slower manufacturing pace in October shows the fine line between strong local buying and a difficult export scene. The recent US-China trade deal and the chance of more government help keep some hope alive.
Investors and officials will watch new economic numbers to see how well China recovers and to adjust plans as needed.
Bob Mason brings over 28 years of financial industry experience, covering currencies, commodities, equities, and macroeconomic analysis with a focus on Asian and European markets.
Disclaimer: This article is for informational purposes only and does not form financial advice. Readers should do their own research and talk to experts before making any investment decisions.
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