Robots manufacture auto parts at a factory in Ningde, China on October 17, 2024.
Nurfoto | Nurfoto | getty images
BEIJING – China's official purchasing managers' index for October fell to 50.1, falling into expansion territory for the first time since April, according to National Bureau of Statistics data released on Thursday.
The data beat expectations by 49.9, according to a Reuters poll. September's reading was 49.8. The last time the PMI was above the 50-point line that determines a contraction from activity was in April with a reading of 50.4.
“I expect economic momentum to improve modestly in the fourth quarter due to monetary and fiscal policies [loosen]” Ziwei Zhang, president and chief economist of Pinpoint Asset Management, said in a note.
The Standing Committee of China's parliament is scheduled to meet next week, and is expected to release details on fiscal stimulus after the meeting concludes on November 8.
The sub-index of production for October came in at 52, while the sub-index of new orders stood at 50. Raw materials inventories rose to 48.2, still in contraction territory, with employment at 48.4, which was slightly better than last month.
The Bureau of Statistics' PMI for non-manufacturing activity rose to 50.2 in October. That was up from September's 50 but down from August's print of 50.3.
The employment share of the non-manufacturing PMI rose 1.1 percentage points to 45.8.
A survey released Wednesday of 1,436 Chinese businesses conducted between Oct. 18 and 25 by the US-based China Beige Book found that manufacturing output improved from a year earlier. New domestic and export orders also picked up, with export orders from the US falling less sharply in October.
The Caixin China general manufacturing PMI for October is due to be released on Friday, while the Caixin China general services PMI is due to be released on November 5.
China's economic growth has slowed due to declining consumer demand and a slowdown in real estate. Exports have been a rare bright spot.
Shares rose after a series of high-profile stimulus announcements over the past several weeks, including a meeting led by Chinese President Xi Jinping in late September that called for strengthening fiscal and monetary policy support Was.