China’s economic recovery continues as manufacturing activity rises to highest level since January 2011
- Caixin/Markit manufacturing purchasing managers’ index (PMI) rose to 53.6 in October, the highest reading since January 2011
- On Saturday, the China’s official manufacturing PMI fell slightly to 51.4 in October from 51.5 in September, but continued to show strong activity
The Chinese manufacturing sector continued to show strong activity in October, indicating the nation’s robust rebound from the coronavirus pandemic continued in the first month of the fourth quarter.
The Caixin/Markit PMI focuses more on small, private firms unlike the official index whose respondents come mostly from larger, state-owned firms.
A PMI reading above 50 means that activity in the sector is expanding, a level below 50 that it is contracting. The further the reading is above or below 50, the faster the expansion or contraction.
To sum up, recovery was the word in the current macro economy, with the domestic epidemic under control. Manufacturing supply and demand improved at the same time
“To sum up, recovery was the word in the current macro economy, with the domestic epidemic under control. Manufacturing supply and demand improved at the same time. Enterprises were very willing to increase inventories. Prices tended to be stable. Business operations improved, and entrepreneurs were confident,” said Wang Zhe, senior economist at Caixin Insight Group.