NG: China’s manufacturing PMI surprisingly returned to expansion

“China’s PMI beat expectations with an uptick to 50.1 in October, which marked the first expansion since April, and marked a six-month high. The 50.1 level is the smallest possible expansion for the PMI but nonetheless bucks expectations for continued contraction and is a positive sign that the small bounce back of industrial production that we saw in September could continue. Looking at the subindices, there are some signs that the domestic situation could be seeing a gradual improvement. The production subindex hit a six-month high of 52.0, and new orders also returned to a neutral state of 50.0 after contracting the previous five months. While still in contraction, employment (48.4 up from 48.2), purchases (49.3 up from 47.6), imports (47.0 up from 46.1), and backlog of orders (45.4 up from 44.0) also saw smaller declines compared to last month.”

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