China's PMI figures undershoot expectations

The news: China's official manufacturing purchasing managers index (PMI) undershot expectations and fell into contraction in October, adding to the gloomy outlook for the world's second largest economy.

The numbers: Manufacturing PMI came in at 49.5 index points, according to National Bureau of Statistics data, failing to meet expectations of a steady hold at 50.2 and falling below the 50.0 figure that denotes expansion from contraction. Non-manufacturing PMI was 50.6 index points, which also undershot the 51.7 expected by analysts.

The context: The figures will likely dampen hopes after a September uptick that followed several months of contraction. Today's official PMI, which covers large and state-owned companies, will be followed tomorrow by the Caixin Manufacturing PMI, which tracks small-to-medium sized enterprises and is considered to give a better indication of private sector performance.