Nov 2, 2012
Translated by Pang Lei

China's official Purchasing Managers' Index (PMI) climbed to 50.2 in October from 49.8 in September, the National Bureau of Statistics and China Federation of Logistics and Purchasing announced in Beijing on Thursday.

The reading was largely in line with economists' forecasts, with a Bloomberg survey of 30 economists resulting in a median estimate of 50.2 and a survey of nine economists by Dow Jones Newswires providing an average forecast of 50.3.

The index is based on responses from purchasing managers at 820 companies in 31 industries.

A PMI reading of above 50 percent is often said to indicate expansion in manufacturing.

According to the data, an index of new orders rose to 50.4, breaking the 50 percent mark for the first time since May 2012.

New export orders contracted, though at a slower rate than previous month with the figure up half of a percentage point to 49.3 in October.

Zhang Liqun (張立群), an analyst with the Development Research Center attached to China's State Council, said "That the PMI reading for October has continued to strengthen and has already passed the 50 percent mark, shows that the economy has already bottomed out and has stabilized."

An alternative PMI survey conducted by HSBC, which covers more than 430 companies and takes account of smaller businesses, gave a final reading of 49.5 in October, up from 47.9 in September.

An article in today's People's Daily also commented on the amount of attention that Thursday's PMI figure had attracted around the world.

The Shanghai Composite Index rose 1.7 percent on Thursday, its biggest advance since Oct. 9.

Links and Sources
The Beijing News: 10月PMI重上50%
People's Daily: 中國制造業PMI重回臨界點 外媒上調中國經濟預期