China’s manufacturing sector contracted for the seventh consecutive month in October, official figures revealed on Friday, as trade uncertainty ahead of discussions between President Xi Jinping and US President Donald Trump put pressure on the world’s second-largest economy.

The National Bureau of Statistics (NBS) reported that the manufacturing Purchasing Managers’ Index (PMI), a key indicator of industrial activity, stood at 49.0, signalling continued contraction.

This reading fell short of the 49.6 forecast from a Bloomberg economist survey and was 0.8 points lower than September’s figure.

Manufacturing throughout October decelerated “due to factors such as… the more complex international environment,” according to a statement by NBS statistician Huo Lihui.

Huo also noted that China’s “Golden Week” National Day holiday in October contributed to the slowdown, as factory activity typically dips during this period.

He added that the country’s overall economic output “remained generally stable.”

The October PMI matched April’s reading of 49.0, marking the lowest level of factory activity so far this year, Bloomberg reports.

April marked the beginning of a period of contraction, as factories navigated the fluctuations and uncertainties of the US-China trade war.

“The economic momentum has weakened” since the middle of the year, said economist Zhiwei Zhang of Pinpoint Asset Management.

Yet as negotiations with the United States “went successfully… I think the macro policy in China will stay unchanged for the rest of this year”, he added.

The leaders of the world’s two largest economies met on Thursday in South Korea for high-stakes trade negotiations.

Trump announced plans to cut a 20% tariff on Chinese goods in half, while Xi agreed to suspend certain export restrictions on the critical rare-earth sector for one year.

In addition, China would resume purchasing US soybeans, which had been halted during this harvest season, according to Trump.

Meanwhile, the non-manufacturing PMI, which tracks activity in sectors such as services and construction, edged up to 50.1 in October from 50.0 in September, indicating a modest expansion and aligning with a Bloomberg survey forecast.