Published: 11:57, October 31, 2020 | Updated: 12:54, June 5, 2023
China factory outlook slips slightly as recovery stays on track
By Xinhua

In this Jan 26, 2019 photo, workers perform quality checks at an auto part manufacturing factory in Leting county, Hebei province, China. (PHOTO / XINHUA)

BEIJING - China's manufacturing purchasing managers' index (PMI), a gauge of factory activity, edged down in October but stood above expansion territory thanks to the government's measures to support growth.

The purchasing managers' index for China's non-manufacturing sector came in at 56.2 in October, up from 55.9 in September

The PMI for the manufacturing sector came in at 51.4 in October, slightly down from 51.5 in September, the National Bureau of Statistics said Saturday.

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A reading above 50 indicates expansion, while a reading below reflects contraction.

The October PMI, beating the market expectation of 51.3, marked the eighth consecutive month of expansion.

The sub-index for production stood at 53.9, remaining in expansion territory and down 0.1 points from September, while that for new orders stayed unchanged at 52.8, indicating a continued improvement in demand, according to NBS senior statistician Zhao Qinghe.

The new export order and import sub-indexes climbed to 51 and 50.8 in October, up 0.2 points and 0.4 points respectively from the previous month.

Saturday's data also showed the PMI for the country's non-manufacturing sector came in at 56.2 in October, up from 55.9 last month and marking the highest level this year.

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A breakdown of the data showed the sub-indexes for the business activities of rail transportation, civil aviation as well as accommodation and catering remained above 59

The non-manufacturing PMI has seen growth for three consecutive months and remained above 50 for eight months in a row, data from the NBS showed.

In October, the service sector accelerated its pace of recovery, with the sub-index for business activities expanding 0.3 points from the previous month to 55.5.

With the eight-day National Day holiday a key driving force, Chinese people are now more willing to go out and spend their money, said NBS senior statistician Zhao Qinghe while analyzing the reading for October.

A breakdown of the data showed the sub-indexes for the business activities of rail transportation, civil aviation as well as accommodation and catering remained above 59, Zhao added.

The sub-index tracking business activity expectations hit 62.2, remaining above 60 for the fourth consecutive month, sending a positive signal for the economic recovery.

The construction industry continued its robust growth, as the sub-index for business activities stood at 59.8. Infrastructure construction picked up steam as sub-indexes related to new orders, employment and civil engineering construction registered growth from the previous month.

China has taken multi-pronged measures to protect the economy from succumbing to epidemic shocks. Building on earlier efforts to advance the resumption of production, the country has ramped up tax and fee reductions and provided firms with low-cost loans to help them tide over difficulties.