China's factory activity contracted in October as production and new orders slowed after the week-long National Day holiday, while services expanded slightly, official data showed on Friday.

The manufacturing purchasing managers' index (PMI) fell to 49.0 from 49.8 in September, according to the National Bureau of Statistics (NBS), slipping further below the 50-point mark that separates growth from contraction.

The non-manufacturing business activity index inched up to 50.1 from 50.0, supported by holiday-related demand in travel, accommodation and entertainment. The composite PMI output index came in at 50.0, indicating overall activity remained broadly stable.

Large manufacturers continued to show resilience, with a PMI of 49.9, while high-tech and consumer goods sectors stayed in expansion territory above 50. In contrast, small firms saw sharper declines.

Despite the softer readings, sentiment remained positive — the NBS said the production and business expectations index stood at 52.8, suggesting most firms remain optimistic about future growth.