Beijing, 31 (efe-epa).- The official purchasing manager index (PMI) of the Chinese manufacturing industry fell slightly in October to 51.4 percent, compared to 51.5 percent registered in September, the National Office reported today of Statistics (ONE).
However, the non-manufacturing business activity index and the composite production PMI stood at 56.2 percent and 55.3 percent respectively, 0.3 and 0.2 points higher than the previous month, according to ONE.
The office said the Chinese economy “continues to recover and stabilize” and, although the PMI fell 0.1 points, it remains above 51 percent since July and in the expansion range for eight consecutive months.
A level above 50 percent in the PMI reflects growth and below contraction.
Likewise, ONE said production and demand maintained “a faster recovery,” with the production index at 53.9 percent and that of new orders at 52.8 percent, the same as the previous month.
He also highlighted that the recovery of some manufacturing industries “has accelerated,” including textile products, chemical fibers, rubber and plastic, foundry processing, ferrous metal rolling and metal products.
The export and import indices rebounded, with 51 and 50.8 percent, 0.2 and 0.4 points above those registered in September.
“The recovery of the manufacturing industry in the main economies has improved so China’s imports and exports have recovered even more,” ONE said.
According to the office, the continued recovery in demand has pushed prices up, so that the purchase price and ex-factory price indices of the main raw materials stood at 58.8 and 53.2 percent, three and 0.7 points above last month.
In addition, it stands out that business confidence continues to increase with a rise to 59.3 percent in the expectation index for business operations and production, 0.6 points more than in September.
The PMI of large and medium-sized companies remained similar to the previous month, but that of small ones was 49.4 percent, 0.7 points less and below the contraction line, which indicates, according to ONE, that market demand for small businesses “is particularly insufficient.”
The recent upsurge in the pandemic in many foreign countries has put these companies under pressure to lengthen the procurement cycle for imported raw materials and increase transportation costs.
Regarding non-manufacturing activity, the index has rebounded for three consecutive months and reached the highest point of the year in October.
ONE said the service industry is recovering driven by the Chinese National Day festivities and the subsequent holiday week in early October.
“The willingness of residents to travel has increased and consumer demand has accelerated,” it said.
The construction industry continues to grow, with an activity rate of 59.8 percent, 0.4 points lower than in September but with a good level of expansion.
“The amount of labor employed by companies has increased and infrastructure construction and production activities have accelerated,” the office says.
The Chinese economy grew 4.9 percent year-on-year in the third quarter, slightly less than analysts expected.
Growth for the year as a whole is expected to be between 2 and 3 percent, the lowest in 30 years for the Asian giant, but much higher than that of the rest of advanced economies, which expect negative results. EFE-EPA