Caixin PMI: Factory activity in China rose in October

BEIJING – Factory activity in China returned to expanding territory in October, after stagnating in September, revealed a private indicator, in contrast to official data pointing to weaker expansion.

The index of Purchasing Managers in the manufacturing sector Caixin China rose slightly from 50.0 in September to 50.1 in October, Caixin Media Co. and research firm Markit announced Thursday. Level 50 separates an expansion of manufacturing activity from a contraction.

The total number of new orders rose slightly in October, while new export orders recovered but remained in negative territory, Caixin said.

Zhengsheng Zhong, an economist at CEBM, said CEBM economist Zhengsheng Zhong said his production subindex fell for the second month in a row in October, while remaining positive.

"The overall expansion in the manufacturing sector was still weak, and production and business confidence continued to cool despite steady demand," said Zhong.

The Caixin PMI has improved, while the official PMI published by the manufacturer on Wednesday has dropped from 50.8 in September to 50.2 in October.

The Caixin China manufacturing PMI is based on data compiled from monthly responses to questionnaires sent to purchasing managers in more than 400 manufacturing companies.

Compared with official corporate coverage, including large state-owned enterprises, by the official gauge, the Caixin PMI tends to follow smaller private manufacturers more closely.

Write to Grace Zhu at [email protected]