1. Manufacturing ‘bucks’ expectations
China’s manufacturing sector showed broad improvement in October, with the impact of Beijing’s stimulus drive seemingly becoming felt.
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The official manufacturing purchasing managers’ index (PMI) – a survey of sentiment among factory owners – beat expectations and ended five straight months of contraction by rising to 50.1 in October, compared to September’s reading of 49.8.
Readings above 50 indicate expansion on a monthly basis, while one below 50 suggests contraction.
Within the official manufacturing PMI, the overall new order subindex edged up, even although the new export order element was 47.3 in October, a further decline from 47.5 in September.
“The 50.1 level is the smallest possible expansion for the PMI, but nonetheless bucks expectations for continued contraction, and is a positive sign that the small bounce back of industrial production that we saw in September could continue,” said Lynn Song, chief economist for Greater China at ING.
The Caixin/S&P Global manufacturing PMI echoed the official survey, beating projections with a rise to 50.3 in October from 49.3 the previous month.