China's production meter is approaching contraction in October

China's production growth slowed down in October, according to official figures, when it comes to assembly over the slow Chinese economy.

Manufacturing Purchasing Index published by China's National Bureau of Statistics dropped to 50.2 from 50.8 the month before and Kantet closer to the 50-point line, separating the growth from contraction.

The October results were also under a median forecast from economists prompted by Reuters and predicted that the meter would ease to 50.6.

A reading for the services sector showed growth of 53.9, down from 54.9 the month before. Combined, it shook out to a compound PMI of 53.1[ads1], also down a percentage point from September, but still in the expansive area.

The results come as Chinese policy makers roll out a series of measures to strengthen the financial system among a slower economy, rising debt and trade tensions with the United States.

This week's securities regulators tried to increase the mood of stock markets with a promise to increase liquidity. Earlier in October, President Xi Jinping's top economic adviser, Vice President Liu He, as well as the leaders of China's Central Bank and Bank Regulator, all moved to boost China's confidence.

Julian Evans-Pritchard, economics consultant noted that the production PMI reading for October was the worst in two years and was mainly driven by weaker domestic demand, even though the export subindex was also down.

"We think more fiscal and monetary solutions will be needed in the coming months to help stabilize growth," said Evans-Pritchard.

Nomura analysts now expect a "poorer growth mood" next year.

"Beijing's political focus so far has been to contain a credit freeze … growth will probably slow to such a worrying pace in spring 2019 that Beijing may have to greatly increase its relief / stimulus measures at the time," the bank analysts said .