MNI BRIEF: China Construction PMI Sub-Index Falls In October

China’s construction business activity index, a key sub-index of the non-manufacturing Purchasing Managers’ Index (PMI), fell to 49.1% in October, down 0.2 percentage points from September, the National Bureau of Statistics (NBS) said Friday.

The reading marked the third consecutive month below the 50-point expansion threshold, signalling a continued slowdown in building and infrastructure activity.

However, the business activity expectation index rose to 56.0%, up 3.6 points on the month, suggesting improving optimism among firms, the bureau said.

A government advisor told MNI that China’s economic transition has reduced the country’s reliance on certain commodities, allowing Beijing to gain greater pricing leverage with global miners and expand yuan-denominated commodity trade. (See MNI INTERVIEW: China Policy Support For Yuan)