Manufacturing activity in China reached its highest level in nearly ten years in October, according to an independent benchmark index, which confirmed, on Monday, the recovery of the world's second-largest economy.
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The purchasing managers index (PMI) for the manufacturing sector, calculated by the firm IHS Markit for the media group Caixin, stood at 53.6 points last month against 53 in September, its highest level. highest since January 2011.
This indicator contradicts the official purchasing managers index, which on Saturday showed a slight dip to 51.4 in October from 51.5 in September.
"Taken together, these two indicators nevertheless reveal that the momentum of the manufacturing sector remained strong last month", commented in a note the firm Capital Economics.
Caixin's figure is higher than analysts' predictions, who on average bet on a slight dip to 52.8.
Export orders slow
This index collapsed at the start of the year as China grappled with the coronavirus, which appeared in the center of the country at the end of 2019. It has since recovered steadily as the epidemic was brought under control in the country.
A sign of the weakness of external demand due to the devastation of the epidemic in Europe and the United States, the sub-index of export orders however significantly slowed its increase in October compared to September.
The sub-index of recruitment also remained just in positive territory (above 50), which shows that "companies are reluctant to hire," said economist Wang Zhe for Caixin.
“The erratic development of the epidemic abroad weighs on exports.
A total recovery of the labor market will depend on a more lasting return of confidence, ”according to the same source.
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Looking ahead 12 months, however, the morale of the purchasing managers surveyed is at its highest since August 2014. “Respondents generally expect that the impact of the pandemic will diminish and that that the global economic environment picks up again in the course of next year, ”commented Caixin.
The Caixin survey mainly surveys SMEs, and is therefore reputed to provide a more accurate picture of the economic situation than the government figure, which more closely reflects the situation of large state groups.
