Key facts
- Official manufacturing PMI forecast to dip to 50 in October from 50.1 in September.
- Advanced manufacturers like chipmakers benefited from AI boom and state support.
- Traditional sectors face tepid demand and rising input costs.
- Retail sales lagged industrial output in September.
- Auto sales declined for the 12th consecutive month in September.
China's factory activity was likely flat in October, with the official manufacturing purchasing managers' index (PMI) expected to dip to 50 from 50.1 in September, according to a Reuters poll. Advanced manufacturers are performing well, benefiting from the AI boom and state support, while traditional sectors grapple with tepid demand and rising costs. Retail sales and auto sales have lagged, and policymakers are implementing measures to boost domestic demand and ease local government financial strain.