China’s manufacturing sector experienced a notable upturn in October, marking a significant shift after five consecutive months of contraction, with the purchasing managers’ index (PMI) rising to 50.1 from 49.8 in September. This growth represents a crucial crossing of the neutral midpoint of 50 for the first time since May, as reported by the National Bureau of Statistics. Various key sectors, including basic raw materials, equipment manufacturing, high-tech manufacturing, and consumer goods, demonstrated stable and positive performance, contributing to this faster growth trend. The manufacturing PMI for October historically tends to fall below September’s figures, making this year’s increase particularly noteworthy.
Further bolstering confidence in the sector, the business expectation index hit a four-month high of 54, indicating a renewed sense of optimism among manufacturers. The non-manufacturing PMI also saw an uptick, climbing to 50.2 from 50 in September, while the general PMI increased to 50.8 from 50.4. This broad-based improvement suggests that the positive momentum within China’s manufacturing sector is likely to continue throughout the fourth quarter, hinting at a sustained recovery.
