China’s Oct manufacturing PMI increases at fastest pace in almost 2 years

According to media reports, data released by China’s National Bureau of Statistics showed that the country’s official manufacturing Purchasing Managers’ Index (PMI) which measures large state-owned enterprises increased at its fastest pace in almost two years, rising to a reading of 51.2 in October from 50.4 in September on the back of improved growth in China’s manufacturing sector. Any figure above 50 represents an expansion while any figure below 50 shows a contraction. The PMI figure beat analysts’ expectations which had called for another flat reading of 50.4 in October, unchanged from August and September in a survey conducted by Reuters.

The Caixin manufacturing PMI, a private measure which captures mid-sized companies, also rose to 51.2 in October and showed the fastest pace of improvement since March 2011. According to Caixin, stronger new order growth led to the rise in the PMI.

The sub-index for factory output rose to a reading of 53.3 in October from September’s 52.8, expanding at a faster pace while the sub-index for new orders increased to a reading of 52.8 when compared to 50.9 in the previous month. It is also reported that the non-manufacturing PMI grew to 54 in October when compared to 53.7 in September, recording the highest level for 2016.

New export orders decreased to a reading of 49.2 in October from 50.1 a month earlier.

Meanwhile, the government’s official services PMI was up to a reading of 54.0 in October from 53.7 in September and 53.5 in August.