SINGAPORE, Aug 31 Reuters Oil prices eased on Thursday after data showed China39;s manufacturing activity shrank for the fifth month in a row, and as investors cautiously awaited a U.S. personal consumption expenditure report later in the day for any clues on the interest rate outlook.

Brent crude futures for October, which expire on Thursday, dipped 9 cents, or 0.1, at 85.77 per barrel by 0630 GMT. The more active November contract was down 10 cents, or 0.1, at 85.14.

U.S. West Texas Intermediate crude futures for October eased 6 cents, or 0.1, at 81.57.

China39;s manufacturing activity again in August, an official factory survey showed on Thursday, fuelling concerns around weakness in the world39;s secondbiggest economy.

The official purchasing managers39; index PMI rose to 49.7 from 49.3 in July, according to the National Bureau of Statistics, but remained below the 50point level demarcating contraction from expansion.

A tighter U.S. oil supply outlook supported prices in the previous session, but this was pitted against worries about demand, said Yeap Jun Rong, a market strategist at IG.

Overall, the conflicting factors force prices onto some indecision today, further brought on by some waitandsee as focus turns to the U.S. core PCE release later tonight, Yeap said.

Investors are eyeing inflation numbers as measured by the U.S. personal consumption expenditures, which will be released on Thursday. The PCE is the Federal Reserve39;s preferred gauge of…