China's economy weakens, signs point to more strain ahead amid Covid curbs

China’s factory and services activity contracted in October, with signs that things could worsen in the coming months as the government sticks to Covid controls that have disrupted activity across the world’s second-largest economy.
 

Both the official manufacturing purchasing managers index and the non-manufacturing gauge, which measures construction and services activity, fell in the month to 49.2 and 48.7, respectively, missing economists’ expectations. A reading below 50 indicates contraction in activity, while anything above suggests expansion.

“Today’s data suggest it is too early to bet on China’s economic recovery” despite recent third-quarter economic data performing better than expected, said Raymond