(Yicai Global) Oct. 31 -- China's manufacturing and non-manufacturing purchasing managers' indexes both fell this month from last, indicating Chinese firms continuing to expand production and operations, but at a slower rate, statistics show.

China's manufacturing PMI was 50.2 percent this month, down 0.6 percent over last month, while the non-manufacturing business activity index was 53.9 percent in a drop of 1.0 percent, China's statistics bureau announced on its official website today.

Manufacturing supply and demand fluctuated in October because of the National Day holiday and a complex, changeable external environment, and so manufacturing PMI fell from a month ago, but is still growing. A reading higher than 50 percent signifies expansion; one lower signals contraction. This means the manufacturing sector is growing more slowly, as Zhao Qinghe, a senior statistician from NBS' Service Survey Center, interpreted the PMI data.

The PMI for large firms was 51.6 percent, down 0.5 percent on the month, but still 1.4 percent higher than manufacturing PMI, so the steady operations of large firms are the main prop of manufacturing growth. The PMIs for small and medium-sized firms were 47.7 percent and 49.8 percent, respectively, down 1.0 percent and 0.6 percent over last month, with both under the critical 50 percent point.

The non-manufacturing business activity index is still high, though it too fell from a month ago, showing the non-manufacturing sector also still expanding, but more sluggishly, Zhao said.

The service BAI was 52.1 percent, down 1.3 percent from, demonstrating a slowdown in service sector expansion. The construction sector went great guns, with its BAI up 0.5 percent on the month to 63.9 percent.

The comprehensive PMI output index was 53.1 percent for October, falling 1.0 percent from September's tally. The manufacturing output index and the non-manufacturing BAI, as two components of the comprehensive PMI output index, were both down at 52.0 percent and 53.9 percent, respectively, per the agency's statistics.

Editor: Ben Armour