01 November 2013 03:43 [Source: ICIS news]
(adds HSBC’s China PMI in paragraphs 7-10)
SINGAPORE (ICIS)--China’s purchasing managers’ index (PMI) increased to 51.4 in October, up from 51.1 in September, thanks to the rising production and purchasing volumes, official data showed on Friday.
PMI is a barometer of an economy's manufacturing activities, with a reading above 50 indicating an expansion, and a lower number denoting a contraction.
The production sub-index for October rose to 54.4 from 52.9 in September, and purchasing volumes increased to 52.7 in October from 52.5 in September, according to data from the China Federation of Logistics & Purchasing (CFLP).
The data indicate stable growth in the Chinese economy, CFLP analyst Zhang Liqun said, but added that there remains a degree of cautiousness among manufacturing firms.
New orders index edged down by 0.3 points to 52.5 in October, with the new export orders index down 0.3 from the previous month at 50.4, and the import index 0.4 lower at 50.0.
China’s October PMI is based on a survey of 3,000 manufacturers in the country.
Investment bank HSBC, meanwhile, maintained its October PMI reading for China at 50.9, which is also an improvement from 50.2 in September.
Manufacturing output in China - the world's second biggest economy - rose for the third straight month in October, boosted by stronger demand from domestic and overseas clients, HSBC said in a statement.
“Furthermore, it was the strongest expansion of new business from abroad in nearly a year, with a number of panellists citing greater demand in the US in particular,” it said.
“The final HSBC China Manufacturing PMI rose to a seven-month high in October, with the stronger momentum of manufacturing growth translating into the first expansion of employment since March,” said Hongbin Qu, chief economist for China, and co-head of Asian Economic Research at HSBC.
“This in turn should support private consumption growth in the coming months. China is on track for a gradual growth recovery,” Qu said.
Initial reporting by Viola Pan
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