China Caixin PMI Manufacturing rose to 53.6 in October, up from 53.0, beat expectation of 53.0. That’s also the highest level since August 2014. Markit noted that output rises sharply amid quickest increase in total new work for nearly a decade. However, pandemic dampens growth of new export orders.
Wang Zhe, Senior Economist at Caixin Insight Group said: “To sum up, recovery was the word in the current macro economy, with the domestic epidemic under control. Manufacturing supply and demand improved at the same time. Enterprises were very willing to increase inventories. Prices tended to be stable. Business operations improved, and entrepreneurs were confident.
“But the twists and turns of overseas infections remained a headwind for exports. The full recovery of employment depends on stronger and more-lasting business confidence. As the economic indicators for consumption, investment and industrial output for September were generally better than expected, it is highly likely that the economic recovery will continue for the next several months. But there are still many uncertainties outside of China, so policymakers need to be cautious about normalizing post coronavirus monetary and fiscal policies.”
