China Manufacturing Gauge Suggests Smaller Factories Are Seeing Relief

Courtesy of The Wall Street Journal.

Caixin report helps to paint a mixed picture for the economy

BEIJING—China’s factory activity decreased at a slower pace in October, according to a private-sector gauge, indicating Beijing’s earlier stimulus measures might be having an impact.

The new reading released on Monday helps to paint a mixed picture for China’s manufacturing sector. An official government-run gauge of manufacturing activityreleased over the weekend came in weaker than expected. Still, Monday’s reading suggests some factories—particularly smaller and medium-size ones—may be seeing some relief.

The Caixin China manufacturing purchasing managers index, a gauge of nationwide manufacturing activity, rose to 48.3 in October from 47.2 in September, according to data released Monday by Caixin Media Co. and research firm Markit.

The reading suggests the shrinkage in factory activity may be slowing, although it marked the eighth straight month of contraction. A reading below 50 indicates a contraction in manufacturing activity from a month earlier, while a reading above that level indicates expansion.

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