China’s factory activity swings back into expansion in October: Caixin PMI

China’s Caixin/S&P Global manufacturing purchasing managers’ index echoes official survey, which showed activity expanded for the first time since April

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An employee works a textile factory that produces silk products in Fuyang in eastern China’s Anhui province. Photo: AFP

Published: 9:59am, 1 Nov 2024Updated: 10:51am, 1 Nov 2024

China’s manufacturing activity swung back to growth in October as an expansion in new orders led to a pickup in production growth, signalling an improvement in the sector at the start of the final quarter, a private-sector survey showed on Friday.

The Caixin/S&P Global manufacturing PMI rose to 50.3 in October from 49.3 the previous month, beating analysts’ forecasts in a Reuters poll of 49.7.

The reading echoed an official survey on Thursday, which showed manufacturing activity expanded for the first time since April, a stabilising sign and helped by a slew of stimulus measures announced in late September as Beijing sought to pull economic growth back towards this year’s target of “around 5 per cent”.

“The latest Caixin manufacturing PMI reading adds to wider evidence that, after turning a corner in September, the economy continued to regain momentum last month,” said Julian Evans-Pritchard, head of China economics at Capital Economics.

“Stimulus efforts are already having an effect and will remain a tailwind over the coming months.”

Markets are awaiting more details on China’s extra debt to revive the fragile economy as a persistent property market downturn and record-low consumer confidence continue to drag on the recovery of the world’s second-largest economy.