Robots manufacture car parts at a factory in Ningde, China, on October 17, 2024.
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BEIJING – China’s official Purchasing Managers’ Index stood at 50.1 in October, entering economic expansion territory for the first time since April, according to data released by the National Bureau of Statistics on Thursday.
This was higher than the 49.9 expected in a Reuters poll. The reading in September was 49.8. The last time the PMI exceeded the 50-point line that determines a decline in activity was in April at 50.4.
“We expect economic momentum to improve moderately in the fourth quarter following monetary and fiscal policy (easing),” Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said in a note. said.
China’s Parliamentary Standing Committee is scheduled to meet next week and is widely expected to announce details of the fiscal stimulus package after its meeting on November 8.
In October, the production sub-index was 52 and new orders was 50. Raw material inventories rose to 48.2, but are still in the contraction zone, and employment also improved slightly from the previous month at 48.4.
The non-manufacturing PMI for October announced by the Bureau of Statistics rose to 50.2. Although it rose from 50 in September, it was below August’s 50.3.
The employment component of the non-manufacturing PMI rose 1.1 points to 45.8.
A survey of 1,436 Chinese companies from Oct. 18 to 25, released Wednesday by U.S.-based China Beige Book, found that manufacturing output improved from a year ago. New domestic and export orders also increased, slowing the decline in export orders from the United States in October.
Caixin China General Manufacturing PMI for October will be released on Friday, and Caixin China General Services PMI will be released on November 5th.
China’s economic growth is slowing, dragged down by weak consumer demand and a real estate recession. Exports are a rare bright spot.
Stocks rose following a series of high-profile stimulus announcements in the past few weeks, including a meeting in late September led by Chinese President Xi Jinping that called for more fiscal and monetary policy support.
