China sees weaker manufacturing turnout in October

China’s manufacturing industry was expected to decline again in October following a foreseen two-consecutive-month decline in activity. The fall was still attributed to an energy crunch and increasing commodity prices.

A median estimate from economists showed a minimal change in the official manufacturing purchasing managers’ index, which was read at 49.7 this month from 49.6 in September. Readings below 50 indicate a contraction. The official data will be released by the National Bureau of Statistics in Beijing at 9 a.m. on Sunday.

Zhou Hao, senior emerging markets economist at Commerzbank AG in Singapore, said domestic demand and consumption in China has been sluggish this whole year. 

Producer inflation also soared to its highest rate in almost 26 years in September. The increase was driven by surging commodity prices. Economists were expecting worse inflation in October, posing risks to downstream producers’ profits.