China's industry loses pace in October, and the Euro Zone also slows down
The Chinese industrial PMI fell to 52 points and the Euro Zone scored 52.7, both still above the 50 line that separates expansion from contraction.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM INFOMONEY · 2 MIN
China's industrial activity continued to expand in October, but lost some momentum. According to a survey by S&P Global and RatingDog, the country's industrial PMI was 52 points, compared to 52.1 in September. The drop is small, but indicates a slower progress in production.
The data also has a positive sign. Yao Yu, founder of RatingDog, highlighted that new export orders grew for the fourth month in a row. According to the research, new demand came from Asia, Europe and Africa, and the pace of expansion was the slowest in three months.
In the Euro Zone, the slowdown was similar. The region's industrial PMI was 52.7 in October, compared to 52.9 in September, a reading that had already been the highest since May 2022. The preview estimated 52.4, and the final number ended up above this projection.
Despite the better than expected result, growth in new orders in the Euro Zone decreased in October. According to the survey, rising energy costs and interruptions in the supply chain are putting pressure on the margins of companies in the bloc.
Both indices remain above 50, a level that separates expansion from contraction in industrial activity. Neither block contracted, but both registered a lower reading than the previous month, which leaves open the question about the strength of external demand in the coming months.
The disclosure took place on Monday, November 2, according to a Reuters report published from London.
What changes for the investor
For those who follow the stock market, interest rates and the dollar, the data suggests an industrial scenario that is still resilient, but with signs of caution. Readings above 50 indicate that activity continues to grow, and Chinese exports maintain traction. On the other hand, the drop in new orders in Europe and the pressure on energy costs tend to compress the margins of industrial companies, which could appear in future balance sheets. There is no price forecast or purchase or sale recommendation here, and it is up to each investor to evaluate the effect of this data on their own portfolio.
Automatically translated from Portuguese.
