China's Manufacturing Sector Contracts in October, Hindering Economic Recovery

China's manufacturing activity unexpectedly contracted in October, with the official purchasing managers' index (PMI) falling to 49.5 from 50.2, indicating a slowdown in the world's second-largest economy. The non-manufacturing PMI also fell, suggesting a slowdown in the service sector and construction. Weak demand related to the housing slump and a slowdown in infrastructure spending were cited as factors. Despite recent policy support measures, including interest rate cuts and fiscal stimulus, more support may be needed to reach Beijing's annual growth target.