FACTORY activity in China shrank for the sixth straight month to an eight-month low in October, while service sector growth eased as firms grapple with the weakest economic growth in nearly 30 years.

China’s economy is facing heightened risks from slowing global demand and the Sino-U.S. trade dispute, adding pressure on policymakers to roll out more stimulus to avoid a sharper slowdown and bigger job losses.

The Purchasing Managers’ Index (PMI) fell to 49.3 in October, China’s National Bureau of Statistics said Thursday, versus 49.8 in September. The 50-point mark separates growth from contraction on a monthly basis.

Weighed down by cooling domestic demand, sluggish investment and a protracted trade spat with the United States, China’s economic growth slowed to a near 30-year low of 6 percent in the third quarter, raising expectations that the government will need to roll out more support measures soon.

New export orders fell for the 17th month in a row in October, with the sub-index down to 47.0 from 48.2 in the previous month.

Total new orders, which includes those for export and domestic use, fell back to contractionary territory and erased September’s fleeting growth, suggesting continued weakness in demand at home.

Demand contraction would put a dent on prices and further chip away the already-thin margin for manufacturers. In September, China’s producer prices posted the steepest decline in more than three years, while industrial profits shrank for the second month.

Factories continued to shed jobs in October on weakening demand and rising business uncertainties. The sub-index for employment was at 47.3 in October compared with 47 the previous month.

Activity at larger firms slipped back into contractionary territory after a slight recovery in September. Gauges of activity at small and medium-sized firms continued to be even lower.

Growth in China’s services sector activity slowed in October, flagging a further weakening in domestic demand.

The official services PMI fell to 52.8 from 53.7 in September, the lowest it has been since February 2016 but still above the 50-mark that separates contraction from expansion, according to a separate NBS survey. (SD-Agencies)