Workers are viewed on a production line producing solar cell components at a factory in Huzhou, Zhejiang Province, China on February 12, 2019.
Lin Yunlong | Zhejiang Daily | Reuters
China on Thursday reported that factory activity shrank for the sixth straight month in October, with the official purchasing leaders' index of production reaching 49.3 in October.
Analysts polled by Reuters expected October's official industry PMI to remain flat. PMI measurements above 50 indicate expansion, while below this level they signal contraction.
In September, the official industry PMI was 49.8, according to the country's statistics bureau.
PMI is a study of how companies view the operating environment. Such data provides a first glimpse of what happens in an economy, as they are usually among the first major economic indicators released each month.
China's PMI data is closely monitored by global investors for signs of trouble amid a national economic downturn and ongoing US-China trade conflict.
Politicians have limited opportunities to increase growth, especially in monetary policy such as cutting interest rates. Pig prices ̵
"You really have to tough it out," Hao Hong, chief of research and chief strategist at Bank of Communications International, told CNBC on Thursday.
"This is really a kind of embarrassing matter that the central bank cannot reduce interest rates to boost growth, so as a result, the Chinese market tends not to do very well when the economy slows while inflation increases," he said to CNBC's "Street Signs."