Mixed messages from surveys on state of Chinese manufacturing
Independent study suggests the sector steadied in October, a day after an official survey painted a slightly gloomier picture for factories in world’s second-biggest economy
Chinese factory activity stabilised in October, according to independent data released on Wednesday, one day after a disappointing official reading suggested output growth had slowed.
The world’s second-largest economy registered 6.8 per cent growth in the third quarter of the year, down from 6.9 per cent in the first two quarters.
But analysts have warned of a slowdown ahead as the country tightens financial controls to slow the pace of debt growth and reduces production in the northeast to tackle the country’s notoriously bad air quality.
The Caixin Purchasing Managers Index – an indicator of conditions at small manufacturers – came in at 51.0 in October, unchanged from the previous month.
A PMI figure above 50 represents growth while anything below points to contraction.
“October survey data signalled a further marginal improvement in manufacturing operating conditions across China,” Caixin said in a statement with data compiler IHS Markit.