Source: Sharecast
The latest RatingDog China general manufacturing PMI was 52.0, broadly unchanged on September’s 52.1 but ahead of consensus expectations for a reading of 51.6. It was also the eleventh consecutive month of expansion.
A reading above the neutral 50.0 benchmark indicates growth, while one below it suggests contraction.
Respondents flagged a solid rise in new orders on the back of robust demand from both domestic and external sources. That prompted firms to boost both purchasing and hiring activities, while inventory levels also rose.
However, business confidence ticked modestly lower.
Yao Yu, founder of RatingDog, said: "Business sentiment remained positive, though the degree of confidence eased to a nine-month low, with some firms concerned about elevated input prices and intensified competition.
"The manufacturing sector sustained a solid expansion at the start of the fourth quarter, with sharper output growth and solid new order inflows, alongside renewed falls in selling prices and softer confidence."
However, the survey contrasted with the official manufacturing PMI. Released on Saturday by the National Bureau of Statistics, the official PMI fell to 49.3 from 50.1 in September. It was also below forecasts, for 50.0. The sub-indices for both new orders overall and new export orders remained in contraction.
Yao acknowledged that cost pressures, price competition and subdued confidence "warrant attention". But he said the RatingDog PMI was still expected to remain in expansionary territory "in the near term".
The RatingDog PMI, which is compiled by S&P Global, is based on responses to questionnaires sent to purchasing managers at a panel of around 650 manufacturers. Data were collected between 12 and 22 October.