Factory activity in China fell for an eighth straight month in October although at a slower pace, fuelling hopes that the industry’s long slump may be bottoming out.
The Caixin/Markit China Manufacturing Purchasing Managers’ Index(PMI) edged up to 48.3 in October from 47.2 in September.
Taken together with the latest official surveys of manufacturing and services, it reinforces economists’ views that business conditions remain sluggish.
There are indications that global demand may be improving: new export orders in China expanded slightly for the first time since June.
But overall, orders fell for a fourth straight month as domestic demand remained weak.
The annual rate of growth in the Chinese economy recently dipped below seven percent.