Beijing said China’s factory activity shrank for a second month in October, putting it down to power shortages, high raw material prices, and soft domestic demand. Meanwhile, authorities said producer prices have risen to “years high.” Oct. 31 data from the National Bureau of Statistics (NBS) show China’s purchasing managers’ index (PMI) for the manufacturing sector contracted to 49.2 in October, down from 49.6 in September. The 50 mark separates growth from contraction on a monthly basis and a reading below 50 indicates a decline. The monthly PMI of September shrank for the first time since February 2020 as the country was in the grip of a power crunch that pushed up coal prices. In addition, factories faced tougher emissions standards. “The supply and demand sides slowed down further,” senior NBS statistician Zhao Qinghe said in an accompanying statement. In line with the softer headline PMI, the sub-index for production continued to …