China’s PMI at 50.8 in October

China’s official Purchasing Managers’ Index (PMI) eased to 50.8 in October from September’s 51.1, the National Bureau of Statistics said on November 1.

The monthly index kept above the 50-point level – indicating economic growth versus economic contraction. The result showed that China’s manufacturing sector “continued to maintain steady growth in general,” the bureau said. The index is compiled in collaboration with China Federation of Logistics and Purchases.

The PMI however gave little indication of an imminent recovery in demand for Chinese factory output. An index for new orders – a proxy for foreign and domestic demand – retreated to 51.6 in October from September’s 52.2. New export orders edged down to 49.9 in October, pointing to a contraction, from 50.2 in September.

Still, the PMI showed big Chinese factories were weathering the downturn better than their smaller counterparts. Large manufacturers grew last month with their PMI little changed at 51.9, data showed, while business shrank for small- to medium-sized factories.

The PMI for mid-sized factories fell to 49.1 in October from September’s 50, and the index for small manufacturers was little changed at 48.5.

The production and business activities expectation index was 54.1, down 1.9 percentage points month-on-month. But more than half of enterprises were still optimistic about production and business activities within the next three months, said the National Bureau of Statistics.