Chinese manufacturing data shows unexpected drop

Chinese manufacturing data has delivered an unexpected contraction, added to concerns that the country's growth is still slowing in the face of economic stimulus.

The official Purchasing Managers' Index (PMI) came in at 49.8 for October, matching the previous month's reading and falling short of market expectations of 50.0, the figure separating growth from contraction.

It is the third consecutive month that the PMI has shown a reading of below 50.

"Because of the recent weak recovery in the global economy and downward pressure in the domestic economy, manufacturers still face a severe import and export situation," Zhao Qinghe, a senior statistician at the National Bureau of Statistics said.