China’s small factory activity best in nearly three years, but outlook for Asia region remains fragile
- The Caixin/Markit factory purchasing managers’ index (PMI) improved to 51.7 in October, its highest level since February 2017, and from 51.4 in September
- But the regional outlook remained uncertain, with exports from South Korea and Singapore continuing to plunge amid the US-China trade war
China’s small factory activity expanded at its fastest pace in nearly three years in October, a private survey showed on Friday, but outlook for the region remained uncertain amid trade war tensions with the United States.
The Caixin/Markit manufacturing purchasing managers’ index (PMI) improved for a fourth straight month to 51.7 in October, its highest since reaching the same level in February 2017, and from 51.4 in September. The figure beat the expected 51.0 based on a poll compiled by Bloomberg. A reading above 50 indicates expansion, while below 50 points to contraction.
The Caixin PMI mainly tracks 500 smaller private factories, while the official index focuses on 3,000 larger manufacturers.
The gauge for new export orders returned to expansionary territory and reached the highest point since February 2018, due likely to the US’ move to exempt more than 400 types of Chinese products from additional tariffs
The Caixin statement showed new export orders rose at the fastest pace since US-China trade war broke out nearly 16 months ago, pointing to continued improvement in the manufacturing industry, said Zhengsheng Zhong, director of macroeconomic analysis at CEBM Group