China: Manufacturing PMI inches down in October
October 31, 2020
The manufacturing Purchasing Managers’ Index (PMI) published by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP) declined slightly from 51.5% in September to 51.4% in October. That said, the print was above the 51.3% expected by market analysts. As a result, the index remained above the 50.0% threshold that separates expansion from contraction in the manufacturing sector.
October’s reading was the result of declines in job creation and inventories, while the output and suppliers’ delivery times posted smaller losses. All-important new orders steadied in the same month. As a result of the easing of the global lockdown, export orders jumped to an over two-year high in October. Meanwhile, input prices—a reliable leading indicator for producer inflation—continued to climb.