Rising China PMI signals improving economy

China’s official purchasing managers’ index rose in October, indicating the first acceleration in China’s manufacturing growth in three months, Bloomberg reported. The PMI increased to 50.2 in October up from 49.8 in September. A result above 50 signals accelerating growth; a figure less than 50 indicates decelerating growth. Output increased to a six-month high of 52.1, while new orders topped 50 to hit a six-month high, according to the data. New export orders contracted at a slower pace. The index is a compilation of responses from purchasing managers at 820 firms in 31 industries. The figures signal to some analysts a revival in the world’s second-largest economy following a seven-quarter slowdown, as commodities production, exports and retail profits geared up in September. “The worst is behind us already and China is bottoming out,” said chief economist Joy Yang at Mirae Asset Securities (HK).