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China’s  October Caixin manufacturing PMI came in at 50.1 vs. 49.9 expected and 50.0 last, suggesting that the production remained broadly unchanged last month.

On Wednesday, the purchasing managers’ index (PMI) for China’s manufacturing sector arrived at 50.2 in Oct, down from 50.8 in Sept, the National Bureau of Statistics (NBS) reported.


“Operating conditions in China’s manufacturing sector were little-changed from the previous month in October. Production was broadly unchanged, as total new business rose only slightly. Subdued sales were partly linked to weaker foreign demand, with export sales declining for the seventh month in a row. Relatively soft market conditions contributed to a further drop in workforce numbers, albeit modest, while buying activity rose only slightly. Furthermore, confidence regarding the business outlook for output dipped to an 11-month low.

The headline seasonally adjusted Purchasing Managers’ Indexâ„¢ (PMIâ„¢) – a composite indicator designed to provide a single-figure snapshot of operating conditions in the manufacturing economy – rose only slightly from 50.0 in September to 50.1 in October. This signalled that operating conditions were broadly unchanged at the start of the fourth quarter, after stagnating in the previous month. Prior to September, the health of the sector had improved for 15 consecutive months.”

Commenting on the China General Manufacturing PMIâ„¢ data, Dr. Zhengsheng Zhong, Director of Macroeconomic  Analysis  at CEBM Group said:  

“The Caixin China General Manufacturing PMI edged up to 50.1 in October from the month before. The subindexes for new orders and employment both edged higher, with the former remaining in expansionary territory and the latter in contractionary territory. The subindex for new export orders also recovered despite staying in negative territory, just off a more than two-year low in September.

“However, the output subindex dropped for the second straight month despite remaining in positive territory, which was in line with the recent significant drop in value-added industrial output despite the rise in manufacturing investment. This may indicate that investment was largely driven by demand related to environmental protection or technological transformation which reflects manufacturers’ production outlook over the next 12 months, stayed in positive territory but dipped further, suggesting ongoing low business confidence.”