Chinese Manufacturing activity rebounds in October

Chinese manufacturing activity rebounded sharply in October as the HSBC China Purchasing Manager Index (PMI) jumped to 51.1 in October compared to 49.9 in September. The PMI index is a well known index to judge the manufacturing activities and any reading more than 50 indicates growth. Reading51.1 is significant as it shows that Chinese manufacturing activity came back to growth path after three months of continuous contraction.

This data is very much optimistic as the Chinese manufacturing activity rose in spite of global slowdown and growing uncertainty about the global economy. The growth was mainly driven by the domestic demand which has been supporting the Chinese economy in recent times.

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