China Caixin October PMI Rises to 48.3 vs 47.2 in September

Manufacturing activity slumped again in China in October although at a less severe pace than the previous month, a closely-watched survey showed Monday.

The preliminary Caixin China manufacturing purchasing managers’ index (PMI) rose to 48.3 in October, above the 47.5 forecast in a Reuters poll.

This compares with a final reading of 47.2 in September, the lowest since March 2009. A print above 50 indicates an expansion in activity while one below points to a contraction.

“The latest PMI readings suggest that momentum in the manufacturing sector continued to improve last month, helped by a pick-up in foreign demand, and that service sector growth is still holding up reasonably well,” said Julian Evans-Pritchard, China economist at Capital Economics.

Both output and new orders components rose, with the new export order component rising to 50.7, the highest level in 10 months.


Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.