By FxNewsChina – Chinese manufacturing data increased in October for third consecutive month, according to a government report released earlier today. China’s official purchasing managers index, released by the China Federation of Logistics and Purchasing, advanced from 53.8 in September to a score of 54.7 in October and shows China’s continuing manufacturing growth.
A score above 50 in the PMI data indicates expanding growth while score below 50 signals a contraction in that area. The PMI manufacturing data surpassed economic forecasts that were expecting a 53.8 score for the month.
HSBC, in conjunction with Markit, also released their purchasing managers index today and showed that China’s manufacturing increased in October to 54.8 from a 52.9 score in September. The increasing PMI score marked one of the largest monthly advancements since April of 2004, according to the report.
Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC commented on the latest report: “Another upbeat reading for the HSBC China Manufacturing PMI suggests the strong growth momentum in domestic demand to warrant around 9% GDP growth in 4Q, despite the still soft increase in new exports orders. The jump in output prices reflects higher input costs amidst strong demand, which also heralds a higher CPI likely to reach its cyclical peak in October.”
Data Summary:
Official China PMI: OCT – 54.7 vs. SEPT – 53.8, CONSENSUS – 53.8
HSBC China PMI: OCT – 54.8 vs. SEPT – 52.9
