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China’s Manufacturing Sector Expands in October

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China’s Manufacturing Sector Expands in October

November 2, 2020
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China’s Manufacturing Sector Expands in October
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China’s manufacturing sector activity expanded for the sixth straight month in October as business confidence continues to grow in the World’s most populous country.

According to a private sector survey, the Caixin/Markit Purchasing Managers’ Index also known as PMI for Chinese manufacturing came in at 53.6 for October, better than analysts estimate of 53.0.

Wang Zhe a senior economist at Caixin Insight Group attributes this to an increase in both demand and supply of Chinese manufacturing goods. He further said this shows the economy is recovering very fast from the coronavirus pandemic that took a toll on businesses.

PMI readings above 50 indicate expansion, while those below that signal contraction. PMI readings are sequential and indicate month-on-month expansion or contraction.

Lillian Jijingi

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