October 24, The preliminary HSBC China Manufacturing Purchasing Managers Index (PMI) rose to 51.1 in October, its highest in 5 months, as output and purchasing activities both strengthened, HSBC Holdings said on Monday.

The HSBC flash PMI is designed to preview China's factory output before the release of official data. The final reading was 49.9 in September, government statistics showed.

A reading below 50 indicates contraction, while a reading above 50 indicates expansion.

The manufacturing output sub-index, was 51.7 in October, a 3-month high, HSBC said.

The HSBC survey also showed the ex-factory price rose at a faster pace than the input price. The input price sub-index fell to 54.3 in October from 58.8 in September.

Qu Hongbin, HSBC chief economist for China, said the rebound of the PMI reading in October was due to increases in new orders and output, indicating good prospects for the country’s manufacturing sector in the fourth quarter.

"All these data confirm our view that there is no risk of a hard landing in China," Qu said in a statement.

Source:en.21cbh