The HSBC purchasing managers' index (PMI) for China rose to a final reading of 50.9 in October from 50.2 in September, unchanged from the flash estimate released previously, HSBC Holdings PLC has announced. The final manufacturing PMI reading was the highest in the past seven months.
In October, output in the manufacturing sector in China increased for the third consecutive month and at the quickest pace since April, HSBC said. The expansion of output reflected stronger demand both at home and abroad, with new domestic orders and new export orders rising at faster rates in October, HSBC commented, adding that the strongest expansion of new business from abroad in nearly a year was observed in October, with a number of the companies surveyed citing improved demand in the US, in particular.
Employment expanded for the first time since March, mainly due to increases in new orders. Accordingly, the sub-index measuring manufacturing output climbed to 54.4 in October from 52.9 in September, while employment edged up to 49.2 from 49.1 in September. As production picked up, companies also bought more raw materials, driving the sub-index for materials purchases up 0.2 percentage points to 52.7.
Qu Hongbin, chief economist for China with the HSBC, said the strong momentum should in turn support private consumption growth in the coming months.
Meanwhile, according to the official data from the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP), China's purchasing managers' index (PMI) for its manufacturing sector rose to 51.4 percent in October, hitting its highest level since August 2012. The official PMI is weighted more towards bigger and state-owned enterprises, while the HSBC survey focuses more on smaller and private-sector firms.
