China factory output hits six-month high as export demand cools

China’s factory output grew at its fastest rate in six months in October, according to a private survey released Monday. The RatingDog China General Manufacturing Purchasing Managers’ Index, compiled by S&P Global, registered 52.0. This figure exceeded the 51.6 forecast from a Reuters poll. It marked a slight decline from the 52.1 reading in September. Any value above 50 indicates expansion rather than contraction.

The private data contrasts with the official PMI released on Saturday, which showed factory activity unexpectedly falling. In the S&P Global survey, the new orders index slipped to 53.3 from 53.4 in September. Growth in export orders slowed to a three-month low. Producers of consumer and intermediate goods reduced their pace, while makers of investment goods accelerated their output.

Firms cut prices in October to support sales. Output prices fell after rising in September. Intense competition forced manufacturers to lower prices. Easing input costs also allowed for discounting. Export prices declined for the first time since November 2025.

Employment rose for a second straight month, though the increase was marginal. The backlog of work increased for a ninth consecutive month. Heavier workloads continued to strain factory capacity. Purchasing activity grew at the fastest pace since February. Stocks of purchased goods rose at the strongest pace in five months.

Business confidence remained positive but fell to a nine-month low. Some firms cited elevated input prices and stiffer competition as primary concerns. The data suggests a mixed environment where production is accelerating even as external demand softens.

The survey was compiled by S&P Global and reported by Reuters on Monday. The findings provide a snapshot of the manufacturing sector's performance heading into the final quarter of the year.