China PMI Update: Manufacturing and Services Show Signs of Growth
China's Manufacturing Activity Shows Positive Growth
In October, China's factory activity witnessed a return to growth, marking a significant turning point as Beijing's recent policy support took effect. The official manufacturing purchasing managers' index (PMI) rose to 50.1 from September's 49.8, according to the National Bureau of Statistics (NBS). A PMI reading above 50 signifies expansion, indicating that the world's second-largest economy might be on the brink of recovery.
Indicators of Economic Activity
- Manufacturing PMI Growth: The new manufacturing export order subindex declined slightly to 47.3, reflecting market conditions.
- Raw Material Costs: A reported 8.3 percentage point increase in the raw material purchase price subindex suggests improved market conditions.
Non-Manufacturing PMI Also on the Rise
China’s non-manufacturing PMI, which encompasses both services and construction, also returned to growth with a reading of 50.2, an improvement from 50 in September. While the construction subindex dipped to 50.4, the service sector’s subindex rose to 50.1.
- The rise in the new order subindex for the construction industry to 43.5 suggests that Beijing's recent support measures for the real estate sector are beginning to have an impact.
- After an aggressive policy response in late September, which included rate cuts and a 1 trillion yuan liquidity injection, the situation appears to be stabilizing.
As conditions continue to evolve, market expectations have improved, signaling a possible recovery.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.