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Manufacturing activity in China rose to more than two-year high during the month of October, offering further evidence of stability in the world’s second-largest economy, in a sector that has suffered excess capacity.
China's official manufacturing purchasing managers' index increased to 51.2 from September's 50.4 for a third straight month of expansion. In seven out of the last eight months, the index has stayed at or above the 50 mark that separates an expansion of activity from a contraction.
The sub-index measuring new orders climbed to 52.8 from 50.9 in September, while the production subindex improved to 53.3 from 52.8, the statistics bureau said. China's official nonmanufacturing PMI, also released Tuesday, edged up to 54.0 in October from 53.7 in September.
Meanwhile, China’s gross domestic product (GDP) has expanded at an annualized 6.7 percent in each of the last three quarters and is on pace to easily meet Beijing’s full-year growth target of 6.5-7 percent.
