China Factory PMI Contracts; Russia Manufacturing Weakens

China’s official manufacturing PMI fell to 49.0 in October from 49.8 in September, marking a seventh consecutive month of contraction and a dip below the 50 growth threshold as firms cited weak domestic demand, a prolonged property slump and renewed trade uncertainties with the United States that have forced some exporters into deep discounting or losses. Outside manufacturing, the non‑manufacturing PMI inched to about 50.1, and headline indicators such as industrial output and large-firm profits showed some improvement largely driven by state-owned enterprises, while smaller private firms continue to struggle; GDP growth slowed to 4.8% in the third quarter and fixed-asset investment contracted in the first nine months. Russia’s manufacturing PMI fell to 48.0 in October from 48.2 — the steepest contraction since July — as output and new orders declined, firms cut employment and input buying and business confidence hit its weakest since May 2022, although some exporters reported a pickup in export orders and lower input-cost pressures. The PMI readings have reverberated in markets, contributing to a broader risk-off tone and a slide in the euro toward the 1.1520 area as investors watch Federal Reserve comments for further direction.