There was good news for the world’s second largest economy after data compiled by the National Bureau of Statistics/China Federation of Logistics and Purchasing revealed a 0.4 rise in the Purchasing Managers’ Index for October.
In September the figure stood at 49.8, just below the 50 level which separates growth from contraction.
The rise to 50.2 in October marks the first expansion in China’s manufacturing for 12 weeks. After being locked in a slowdown for the past seven-quarters this result could hint at a rebound for the Chinese economy.
A chief economist with Mirae Asset Securities (HK) Ltd. commented: ‘The worst is behind us already. Monetary policy has already done its job. [There’s] no way we will see another interest-rate cut because we think inflation is going to rebound.’
Not everyone is as optimistic in their assessment of the situation however, particularly as China’s economy expanded at the slowest pace for three years in the third-quarter.
Despite this, retail sales, industrial production and exports all picked up their pace of expansion in September which bodes well for the months ahead. Forecasts for fourth-quarter growth are currently ranging widely from 7.8 per cent to 8.4 per cent.
Markit Economics and HSBC Holdings Plc conducted a separate survey which came in at a 32 week high.
As of 9:50 am
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