China’s manufacturing activity expanded at the fastest pace in nearly a decade as a recovery in both supply and demand continued to pick up speed in the post-epidemic period, a Caixin-sponsored survey showed Monday.
The Caixin China General Manufacturing Purchasing Managers’ Index (PMI), which gives an independent snapshot of the country’s manufacturing sector, rose to 53.6 in October from 53 the previous month. A number above 50 indicates an expansion in activity, while a reading below that signals a contraction. The October reading was the highest since January 2011 and marked the sixth straight month of expansion, said Caixin.
“(R)ecovery was the word in the current macro economy, with the domestic epidemic under control,” said Wang Zhe, senior economist at Caixin Insight Group.
Over the past few months, many factories across China have resumed operations as the domestic epidemic situation stabilized. Some of them have lately begun to pick up the pace of production ahead of the country’s biggest seasonal sales. Overseas demand also improved, recent export data show, though at a modest rate given the uncertainties presented by the ongoing pandemic.