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The MNI China Business Indicator rose to 55.3 in October from 51.8 in September,the first monthly increase in two months. September’s fall to the lowest for a year followed a strong rise in August, and the October data indicated a return to stable growth.
The future expectations indicator declined to 57.6 in October, the first fall in three months and the lowest since July, having risen to an eight month high in September.
The largest monthly percentage gain in more than two and half years in October put Production at its highest level since December 2012, as the recent strengthening in New Orders fed through to output.
Nine out of the thirteen indicators contained in the report for current conditions rose compared with the previous month, while eight were above the 50 breakeven level in October and five were below.
The New Orders Indicator bounced back in October following the slowdown inSeptember, leaving trend growth firm, while expectations rose strongly.
Commenting on the data, MNI Indicators Chief Economist said, “The September data looked like a blip with overall business conditions picking back up to trend in October”.
“The strong rise in New Orders seen in recent months appears to have preceded the pick-up in GDP growth in the third quarter. Questions have been raised over the sustainability of the latest GDP rise, but the October business survey data tentativelypoints to similar growth in the fourth quarter,” he added.
