China Caixin's manufacturing indicator shows sluggish growth in October

According to a private survey, the Chinese manufacturing sector grew slightly in October, while export sales declined for the seventh consecutive month.

The Purchasing Managers' Index for the Caixin China manufacturing sector reached 50.1 in October, up from 50.1 in September, but managed to stay above the 50-point mark between expansion and contraction.

The survey revealed that production had changed little in October. New orders rose slightly, but the situation remained sluggish, with some respondents reporting a drop in foreign demand.

The result of the Caixin survey follows the official reading of the PMI by the National Bureau of Statistics released Wednesday, falling from 50.8 in September to 50.2 in October, the lowest since July 2016. A PMI for the services sector fell to 53.9 to 54.9, the lowest. since August 2017.

The official indicator of Chinese manufacturing output was the last sign that the country's economy was under pressure despite a series of economic stimulus measures.

The SNB's manufacturing PMI examines the largest state-owned enterprises, compared to the Caixin survey, which focuses on small businesses and private companies.

Zhengsheng Zhong, director of macroeconomic analysis of the CEBM group, noted that an increase in investment in the manufacturing sector was mainly related to the demand for environmental protection or technological transformation. He added:

"Overall, expansion in the manufacturing sector was still weak. Production and business confidence continued to cool despite stable demand. The pressure on production costs has not subsided. The Chinese economy has not seen any obvious improvement. "