(Yicai) Oct. 31 -- China’s manufacturing activity fell for the seventh consecutive month in October, mainly because some demand was pulled forward before the Golden Week holiday and a more complex international environment.

The manufacturing purchasing managers’ index came in at 49 this month, down from 49.8 last month to the lowest level since April, according to data released by the National Bureau of Statistics today. A reading below 50 indicates contraction.

The PMI fell into contraction territory in April amid an escalation in China-US trade tensions. It was 49 in April, 49.5 in May, 49.7 in June, 49.3 in July, and 49.4 in August.

Production stood at 49.7 in October, down from 51.9 in September, while procurement came in at 49, down from 51.6, the data also showed.

The headline PMI remained below the threshold this month, with most sub-indexes also dropping, said Zhang Liqun, special analyst at the China Federation of Logistics and Purchasing. Shrinking demand persists, oversupply continues, and weak demand is increasingly limiting business production and investment, all increasing the pressure on the economy, he added.

Zhang called for a major strengthening of counter-cyclical policy and government investment in public goods to effectively expand demand, boost corporate orders, production, and investment, as well as raise employment and accelerate income growth and revive consumption, thereby quickly steadying and supporting the economic recovery.

There are two main reasons for the slowdown in China’s factory activity, according to Wen Tao, an analyst at the China Logistics Information Center. First, uncertainty around international trade has affected demand and business expectations, making companies more cautious on production. Second, seasonal factors and the long National Day holiday impacted production.

Historical data show that the production index in October is lower than that in September in most years.

The non-manufacturing PMI, which includes construction and services, rose to 5.1 this month from 50 last month. Business activity in the construction industry fell to 49.1 from 49.3, while that for services climbed to 50.2 from 50.1.

The composite PMI output index, which combines the manufacturing PMI’s production sub-index and the non-manufacturing PMI, fell to 50 percent in October from 50.6 in September.

At the start of this quarter, the non-manufacturing sector continued to run smoothly, with positive changes in investment and consumption activities and an uptick in business expectations, said Wu We, an expert from the China Logistics Information Center.

As fiscal and monetary policies continue to work in tandem, policies aimed at stabilizing growth will become effective at a faster rate, and domestic demand momentum will be further strengthened, Wu noted, adding that the fourth quarter will provide solid support for achieving China’s annual economic and social development goals.

Editor: Futura Costaglione