China: PMI hits 18-month high in October
November 1, 2013
The Purchasing Managers Index (PMI) edged up from 51.1 points in September to 51.4 points in October according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP), which publish the index. The increase marks the fourth consecutive month of improvement and the highest reading since April 2012. The print overshot market expectations of an increase to 51.2 points. The index remains above the 50-point threshold that separates expansion from contraction in the manufacturing sector.
October's improvement mainly reflected a notable improvement in production output, which offset a lower reading for new orders. The rest of the PMI's sub-categories remained virtually unchanged over the previous month. Meanwhile, exports orders deteriorated slightly, after improving in the previous three months. Input prices - a reliable leading indicator for consumer prices - declined from a seven-month high recorded in October.