China’s PMI reaches 50.1, factory activity rebounds signalling economic recovery ahead

3 days ago 9

31st October 2024 – (Beijing) Factory activity in China rebounded into expansion territory in October, buoyed by recent policy support from Beijing, signalling an end to five consecutive months of contraction and raising hopes for a recovery in the world’s second-largest economy.

According to the National Bureau of Statistics (NBS), the official manufacturing purchasing managers’ index (PMI) edged up to 50.1 in October from 49.8 in September. This slight increase surpassed the expectations of economists, who had forecast a PMI of 49.5 based on a survey conducted by Chinese financial data provider Wind.

The PMI is a critical economic indicator, gauging the performance and sentiments of factory owners. A PMI reading above 50 typically signifies an expansion in manufacturing activity and, by extension, economic growth, while a reading below 50 indicates a contraction.

This recent uptick suggests that the measures implemented by Beijing to stabilise the economy and boost the manufacturing sector are starting to bear fruit.

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