China manufacturing activity back to growth in October

The Caixin China General Manufacturing PMI climbed to 50.3 in October 2024, up from 49.3 in September, surpassing market expectations of 49.7 and signaling a return to expansion in factory activity following a series of stimulus actions from Beijing in late September.

China manufacturing activity back to growth in October

Production grew at its fastest rate in four months, supported by a fresh increase in new orders and heightened purchasing levels. However, export orders declined, though at a slower pace than before. Employment saw its steepest drop in nearly a year and a half, leading to a rise in unfinished work as workforce capacity diminished. On pricing, input costs increased after two months of declines, reflecting higher material expenses.

Selling price up

As a result, selling prices rose for the first time since June as businesses transferred the higher costs to customers, although export prices continued to fall amid intensified competition abroad. Meanwhile, some freight costs for exports decreased, yet lead times extended again. Business confidence reached a five-month high.