China: Manufacturing PMI soars to over two-year high in October
November 1, 2016
The Purchasing Managers’ Index (PMI) jumped from September’s 50.4% to 51.2% in October, according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP), which publish the index. The reading, which was the highest since July 2014, overshot the 50.3% that market analysts had expected, taking it further above the 50% threshold that separates expansion from contraction in the manufacturing sector.
October’s reading reflected an overall improvement as all the main sub-categories of the index gained ground from September’s print. In particular, employment prospects soared to a nearly three-year high, while production and new orders jumped to 25- and 27-month highs, respectively. Input prices—a reliable leading indicator for producer prices—increased to a five-and-a-half-year high, suggesting that inflationary pressures are gradually resurfacing. New exports, however, fell to contractionary territory in October, signaling weak global demand.