China manufacturing activity expands for first time in six months

31st Oct 2024 07:14

(Sharecast News) - Manufacturing activity in China expanded in October for the first time since April, according to figures released on Thursday by the National Bureau of Statistics.

The official purchasing managers' index rose to 50.1 from 49.8 in September, beating expectations for a reading of 49.9.

A reading below 50.0 indicates contraction, while a reading above signals expansion.

The sub-index for production printed at 52.0 for October, while the new orders index came in at 50.0. The index for raw materials inventory was 48.2, remaining in contraction territory, while the employment index was 48.4.

Meanwhile, the non-manufacturing PMI rose to 50.2 in October from 50.0 in September.

Lynn Song, chief economist, Greater China, at ING, said: "The 50.1 level is the smallest possible expansion for the PMI but nonetheless bucks expectations for continued contraction, and is a positive sign that the small bounce back of industrial production that we saw in September could continue."