Caixin PMI confirms China's October manufacturing slump
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The news: Manufacturing in China's private sector has contracted in October, with Caixin PMI figures coming in below expectations at 49.5 index points.
The numbers: The research group's figures mirrored yesterday's official figures from the national statistics bureau and undershot expectations of 50.8. It was the first time in three months the index had come in within contractionary territory (below 50.0).
The context: While the drop below 50 signalled a return to contraction, Caixin economists said the drop was marginal overall. The weaker-than-forecast data could heighten the need for further stimulus from Beijing, which this month issued extra sovereign debt and raised the budget deficit ratio to help support the economy.
What they said: "The economy has showed signs of bottoming out, but the foundation of recovery is not solid," Caixin senior economist Dr. Wang Zhe said in the report.
"Demand is weak, many internal and external uncertainties remain, and expectations are still relatively weak."
The source: Caixin China PMI Data
