A preliminary reading of the purchasing managers’ index, or PMI, released by HSBC-Markit on Thursday showed activity in China’s manufacturing sector accelerated to a seven-month high in October, to hit 50.9 from 50.2 in September, and beating expectations of a 50.5 reading.
The expansion was fuelled by a faster rate of output, and new orders from the domestic and export markets. However, employment in the manufacturing sector declined but at a slower rate compared to September, even as output and input prices increased.
“October’s HSBC Flash China Manufacturing PMI rose to a seven month high of 50.9 on the back of broad-based modest improvements,” Hongbin Qu, a senior economist at HSBC, said in a statement.
“This implies that China’s growth recovery is becoming consolidated into 4Q following the bottoming out in 3Q. This momentum is likely to continue in the coming months, creating favorable conditions for speeding up structural reforms.”
Gayathri writes about geopolitics and business for International Business Times. She began her career at the Times of India as news coordinator, before moving on to IBTimes...