China manufacturing industry expanded in October
October 27, 2014 by The Associated Press
Oct. 27, 2014 – A gauge of the health of China’s manufacturing industry inched higher in October, but factory output was at a five-month low in a sign of slowing domestic and foreign demand.
HSBC said the preliminary version of an index based on a survey of factory purchasing managers rose to 50.4 from 50.2 in September. Figures above 50 on the 100-point scale indicate expansion.
HSBC’s chief China economist Hongbin Qu said manufacturing likely stabilized in October, but the world’s number two economy continues to show signs of “insufficient” demand.
“This warrants further policy easing and we expect more easing measures on both the monetary as well as fiscal fronts in the months ahead.”
China recently reported economic growth fell to a five-year low of 7.3 per cent in the third quarter as the government tries to nurture domestic consumption while expansion based on trade and industrial investment runs out of steam.
Growth in the previous quarter was 7.5 per cent, helped by mini-stimulus measures.
The preliminary index is based on responses from 85-90 per cent of the factories surveyed.