China Daily via REUTERS/File Photo Acquire Licensing RightsBEIJING, Oct 31 (Reuters) - China's manufacturing activity unexpectedly contracted in October, an official factory survey showed on Tuesday, underlining the challenge facing policymakers trying to engineer a durable economic recovery.
Recent indicators pointed to encouraging signs of stabilising in the world's second-largest economy, supported by a flurry of policy support measures, although a protracted property crisis and soft global demand remain major headwinds.
"Although there are signs of exports bottoming out, a strong recovery in external demand is probably elusive," he added.
But analysts say more policy support may be needed to ensure the economy reaches Beijing's annual growth target of about 5%.
"The additional 1 trillion yuan will help in November and December," Economist Intelligence Unit's Xu said.
Persons:
Xu Tianchen, Dan Wang, Nomura, Unit's Xu, Joe Cash, Sam Holmes
Organizations:
REUTERS, Rights, National Bureau, Statistics, PMI, Economist Intelligence Unit, Hang Seng Bank China, JPMorgan, Moody's, Thomson
Locations:
Hangzhou, Zhejiang province, China, Rights BEIJING