MNI BRIEF: Caixin China Oct Manufacturing PMI Back To Expansion

Caixin China's manufacturing PMI for October rebounded 0.6 points on month to 50.6, bouncing back to the expansionary zone above the breakeven 50, the financial publisher Caixin said on Monday.

The manufacturing industry in October saw strong demand but weak supply, with the production sub-index falling further from September and remaining in the contraction zone for three consecutive months. Surveyed manufacturers said power and raw material shortages, and rising costs constrained output.

While the new order sub-index was above 50 and rose to the highest level in four months. Though external demand remained sluggish, with the new export order sub-index remaining below 50 for the third month as exporters reported sales difficulties amid rising prices as well as blocked delivery due to the pandemic.

Caixin's PMI tracks small and medium-sized manufacturers, while the official PMI covering large state-owned companies and released on Sunday fell by 0.4 points to 49.2 in October from September.