Chinaâ€™s manufacturing expanded for the first time in three months in October, adding to signs growth in the worldâ€™s second-biggest economy is rebounding after a seven-quarter slowdown.
The Purchasing Managersâ€™ Index rose to 50.2 in October from 49.8 in September, the National Bureau of Statistics and China Federation of Logistics and Purchasing said today in Beijing. That matched the median forecast in a Bloomberg News survey of 30 economists. A reading above 50 indicates expansion.
Todayâ€™s report bolsters hopes for a pickup in expansion this quarter after industrial production, exports and retail sales accelerated in September. The data may also reduce pressure on outgoing Premier Wen Jiabao to roll out more stimulus measures during a once-a-decade power handover that begins with a Communist Party congress next week.
â€œThe growth stabilization is on track on the back of improving domestic and external demand, more accommodative monetary and financing conditions,â€ Chang Jian, a Hong Kong- based economist at Barclays Plc who formerly worked for the World Bank, said before the release. â€œIndustrial activity and growth momentum are likely to pick up further this quarter.â€
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