China’s manufacturing sector expands again in October amid steady economic growth
Sector boosted by commodity price rises, say analysts, but concerns remain in the economy, including asset price bubbles
Manufacturing in China expanded last month, surveys released on Tuesday showed, indicating Beijing has more leeway to focus on safeguarding against asset price bubbles and carry out economic reforms rather than introduce measures to boost the nation’s slowing economy.
China’s official manufacturing purchasing managers’ index, which mainly reflects conditions at state-owned companies, came in much better than analysts expected at a more than two-year high of 51.2 last month, according to the National Bureau of Statistics and the China Federation of Logistics and Purchasing.
A reading above 50 indicates expansion, while one below means contraction.
The previous month’s reading was 50.4.
“The better-than-expected PMI adds new signs of a firmer footing for the economy,” said Li Huiyong, chief macro analyst at Shenwan Hongyuan Securities. “We think policymakers will keep monitoring the impact of existing measures before taking further action.”