China's manufacturing sector resumes expansion in October on pro-growth measures
Xinhua | October 31, 2024
A technician debugs an application at an intelligent plant factory of the Institute of Urban Agriculture of Chinese Academy of Agricultural Sciences in Tianfu New Area, southwest China's Sichuan Province, Oct. 16, 2024. (Xinhua/Liu Kun)
China's manufacturing sector returned to expansion in October after five consecutive months of contraction as the government policy support boosted business activity and bolstered market confidence.
The purchasing managers' index (PMI) for China's manufacturing sector came in at 50.1 in October, up from 49.8 in September and surpassing the boom-or-bust line of 50 for the first time since May, according to a statement of the National Bureau of Statistics (NBS) Thursday.
Data showed manufacturing activity this month registered faster growth, with key sectors such as basic raw materials, equipment manufacturing, high-tech manufacturing and consumer goods continuing their stable and positive performance.
Notably, the general equipment, automotive and electrical machinery industries reported rapid expansion, with their production and new order sub-indices above 54.
The business expectation index also rose to a four-month high of 54 in October, reflecting growing confidence among manufacturers.
Wen Tao, an analyst at the China Logistics Information Center, said that as the manufacturing PMI in October often fell below that of September in past years, this October's rising figure highlighted the effectiveness of the recent government policies.
China has introduced a series of policies to beef up the economy this year.
In particular, since late September, the central government has unveiled what experts consider a package of milestone macroeconomic measures, which focused on enhancing counter-cyclical adjustments, expanding effective domestic demand, supporting business operations, promoting property market recovery and invigorating capital markets.
The economic sentiment continued to improve in October as the new policy package was rolled out and existing policies gradually took effect, NBS statistician Zhao Qinghe said.
Thursday's data also showed that the non-manufacturing PMI came in at 50.2 in October, up from 50 in September, and the general PMI climbed from 50.4 to 50.8.
Fueled by increased tourism during the National Day holiday, service activities related to transportation and public facility management were robust. Accelerated infrastructure construction nationwide also strengthened the confidence of construction companies, according to the NBS.
Looking ahead, experts believe that the positive trend in the manufacturing sector will be sustained in the fourth quarter due to effective policies, vibrant consumer activities at the year-end and warming Christmas sales.
With improved business expectations and market vitality, the economic foundation will be further strengthened and the full-year economic growth targets will be achievable, Wen said.