Chinese manufacturing sector showed small signs of recovery, according to a survey of purchasing managers today.
The HSBC Flash Manufacturing Purchasing Managers Index moved up to 49.1 in October, a three month high, although it is still below the 50-point mark that signifies growth.
The flash PMI is the first indicator of real economic activity since official data last week showed GDP growth fell below target in the third quarter – its lowest since the first quarter of 2009 – despite signs of strength in September. The survey captures data mainly from smaller, export-oriented manufacturers in China's private sector.
The uptick in the manufacturing index implies that while China’s factories are growing, they are doing so more slowly than before.