Photo: CFP

China's manufacturing sector further showed improving signs in October, with the Caixin Purchasing Managers' Index (PMI) rising to 50.3, up 1 percentage point from September, according to the private survey released on Friday.     

The 50-point threshold separates expansion from contraction. The survey, which tracks smaller manufacturing firms, indicated that manufacturing activity in China has returned to expansion territory, with demand stabilizing and market confidence improving.

According to the Caixin PMI sub-indices, manufacturing supply has increased and demand has shifted from contraction to slight expansion. 

The new orders index reached its highest level since July, as surveyed companies reported improvements in demand and business development, which supported the rebound in new business volumes. Among the three major categories, orders from intermediate goods manufacturers grew the fastest, followed by consumer goods.

As demand improved, manufacturing firms began to increase their purchasing activities, with the purchasing volume index surpassing the neutral mark for the first time in four months.
 
Wang Zhe, a senior economist at Caixin Insight Group, said that since a series of incremental policies were introduced at the end of September, market demand has stabilized, optimism is returning, and the effects of these policies have begun to materialize.

The Caixin survey followed the official PMI data from the National Bureau of Statistics on Thursday, which showed that the manufacturing PMI increased by 0.3 percentage points to 50.1, marking a return to expansion territory after five consecutive months of contraction.

Global Times