China: PMI returns to expansion mode in October
November 1, 2012
The Purchasing Managers' Index (PMI) published by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP) ticked up from 49.8 points in September to 50.2 points in October. The figure virtually matched market expectations, which had the PMI rising further to 50.3 points. As a result, the PMI surpassed the 50-point threshold that separates expansion from contraction in the manufacturing sector for the first time in three months. The improvement seen in October was broad-based, as all the main sub-gauges that compose the index gained ground over the previous month, with the production output sub-category recording the largest increase. In addition, export orders improved for the second consecutive month despite remaining in negative territory. Meanwhile, the input prices category, which is a reliable leading indicator for consumer prices, reached its highest level in six months.