China’s private manufacturing sector sustained solid expansion in October, with RatingDog PMI Manufacturing edging down from 52.1 to 52.0, extending its run above the 50 threshold to 11 consecutive months, the longest since mid-2021. Manufacturing output expanded at its fastest pace since April, supported by another solid increase in new orders. Total new business grew for the seventeenth consecutive month, while export orders rose for a fourth month, albeit at a slower pace. Stronger demand and production activity encouraged firms to increase purchasing at the fastest rate in eight months and expand employment marginally.
Stronger activity failed to translate into firmer selling prices, however, as intense competition prompted manufacturers to reduce factory-gate charges for the second time in three months. Export prices also declined for the first time in nearly a year. Meanwhile, input costs continued rising, although inflation eased from September as supply conditions improved. Supplier delivery times shortened for the first time since February, while firms continued accumulating stocks of purchases. Despite additional hiring, backlogs increased for a ninth consecutive month, suggesting that production capacity was still being tested by incoming workloads.
The survey highlights a divergence between improving manufacturing activity and persistent pricing weakness. While solid orders and accelerating production point to continued expansion, falling selling prices alongside rising input costs suggest pressure on manufacturers’ pricing power. Business confidence eased to a nine-month low, reflecting concerns about elevated costs and competition. The combination indicates that stronger output is supporting manufacturing growth without necessarily improving the sector’s operating environment.
Data Summary
China RatingDog PMI Manufacturing — October 2026
| Indicator | Sep | Oct |
|---|---|---|
| PMI Manufacturing | 52.1 | 52.0 |
Components
| Component | October Trend |
|---|---|
| Output | Fastest growth since Apr |
| New Orders | Solid growth, broadly unchanged |
| Export Orders | Three-month low, still expanding |
| Employment | Marginal increase |
| Backlogs | Ninth consecutive monthly increase |
| Purchasing Activity | Fastest growth in eight months |
| Stocks of Purchases | Strongest increase in five months |
| Supplier Delivery Times | First shortening since Feb |
| Input Prices | Inflation eased |
| Output Prices | Renewed marginal decline |
| Export Prices | First decline in nearly a year |
| Business Confidence | Nine-month low |
Key Takeaways
- Manufacturing expansion sustained: PMI Manufacturing edged down from 52.1 to 52.0, extending the expansionary streak to 11 consecutive months, the longest since mid-2021.
- Production gained momentum: Output expanded at its fastest pace since April, supported by solid new orders and continued export growth. Purchasing activity accelerated as firms responded to higher workloads.
- Capacity pressures persisted: Employment increased only marginally, while backlogs accumulated for a ninth consecutive month despite stronger production.
- Pricing weakness contrasted with stronger activity: Intense competition pushed factory-gate prices lower for the second time in three months, while input costs continued rising at a slower pace.
- Business confidence softened: Future output optimism fell to a nine-month low amid concerns about elevated input costs and competition, suggesting that stronger production has yet to translate into a more favourable business outlook.
