China’s October Caixin Manufacturing PMI | Real Time Headlines

Factory activity among China’s smaller manufacturers resumed expansion in October, data showed. A private investigation released on Friday.

The Caixin/S&P Global Manufacturing PMI in October was 50.3, exceeding the median forecast of 49.7 in a Reuters survey.

The reading in September was 49.3, in August it was 50.4 and in July it was 49.8. A PMI reading above 50 indicates an expansion in economic activity, while a reading below that level indicates a contraction.

This private indicator focuses on smaller export-oriented businesses, followed by Official PMI data released on Thursdayshowing the country’s manufacturing activity expanded for the first time since April.

Wang Zhe, senior economist at Caixin Think Tank, said in the survey report, “Both supply and demand have expanded, market demand has picked up overall, and production has grown steadily.”

New orders received by Chinese manufacturers also grew at the fastest pace in four months due to “underlying demand conditions and continued new business development efforts,” the release said.

However, Caixin noted that although the decline slowed during the latest survey, export orders were still on a downward trend and employment fell again, meaning manufacturers remained cautious in terms of workforce numbers.

The Caixin Purchasing Managers Index, based on feedback from purchasing managers through questionnaires, has traditionally been one of the first monthly indicators to assess China’s economic conditions.

The world’s second-largest economy has been struggling to regain momentum in the face of tepid consumption and a troubled housing market. Exports have become a rare bright spot.

China’s National People’s Congress Standing Committee will hold a meeting next week and is expected to Unveil details of fiscal stimulus After the party on November 8th.

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