Chinese manufacturing expands in October, says official data
Beijing, China (4E) – The National Bureau of Statistics and China Federation of Logistics and Purchasing on Thursday reported that official manufacturing Purchasing Managers Index (PMI) increased in October to 50.2, up from September’s reading of 49.8.
The figure marked the first expansion in China’s manufacturing in the three months ending October, boosting signs that the world’s second-biggest economy is returning to economic growth after a seven-quarter deceleration.
A PMI reading under 50 shows contraction, while a reading above 50 indicates an expansion.
A survey conducted by Bloomberg of purchasing managers from 820 companies shows that expectations for October’s PMI ranged from 49.8 to 51.8.
HSBC Holdings Plc and Markit Economics preliminary PMI reading shows that manufacturing contracted in October but at a slower rate.
The official PMI figure could boost market confidence for its outlook of China’s economy in remainder of the year.
The result may also lessen the pressure for Premier Wen Jiabao to provide more stimulus before the once-a-decade power transition within the Communist Party slated next week.
China’s central bank has not made any changes in monetary policy after slashing interest rates in June and July amid concerns that additional easing may lead to higher inflation and property prices.