China manufacturing surges in October - PMI
China's manufacturing activity accelerated at its fastest pace for almost a decade in October as domestic demand increased, a survey showed.
The Caixin/Markit purchasing managers' index (PMI) rose to 53.6 from 53.0 a month earlier, showing a growth reading of more than 50 for the sixth month running.
The reading was the strongest improvement in business conditions since January 2011. Analysts on average had expected an unchanged result.
Factories in the world's second-biggest economy reported sharper increases in output and new work though export growth weakened as Covid-19 swept several markets again. Business confidence among manufacturers improved to its highest since August 2014, the PMI showed.
Wang Zhe, senior economist at Caixin Insight, said: "Recovery was the word in the current macro economy, with the domestic epidemic under control. Manufacturing supply and demand improved at the same time … 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."
Employment expanded for the second month running after lagging the wider recovery in its early stages. The employment subindex was only just above 50, indicating the jobs market remained weak, Wang said.
China's official survey of manufacturing, released on Saturday, showed factory activity expansion slowing slightly but above market expectations. The official survey focuses on big companies and state-run businesses whereas the PMI concentrates on smaller, export-led companies.