China's manufacturing sector showed signs of recovery in October, according to data released on Oct. 31 by the Service Industry Survey Center of the National Bureau of Statistics and the China Federation of Logistics and Purchasing. Specifically, the manufacturing purchasing managers' index (PMI) reached 50.1%, an increase of 0.3 percentage points from the previous month, indicating a recovery in the manufacturing sector.

  Zhao Qinghe, senior statistician at the Service Industry Survey Center of the National Bureau of Statistics, pointed out that China's economic prosperity has continued to recover due to the strengthening of a series of incremental policies and the gradual effect of policies already introduced. In addition to the manufacturing PMI, the non-manufacturing business activity index and the composite PMI output index also reached 50.2% and 50.8%, respectively, up 0.2 and 0.4 percentage points from the previous month, and all three indexes are in the expansion range (that is, the critical point of more than 50%).

  Within the manufacturing sector, the production index improved significantly to 52%, an increase of 0.8 percentage points from the previous month, indicating that manufacturing enterprises' production expansion accelerated. The new orders index also reached 50%, up 0.1 percentage points, reaching the critical point, indicating an increase in market demand. Affected by the recent rise in commodity prices and other factors, the main raw material purchase price index and ex-factory price index increased by 8.3 and 5.9 percentage points, reaching 53.4% and 49.9%, respectively, and the overall level of manufacturing market prices has been significantly improved.

  From the perspective of enterprise scale, the PMI of large enterprises was 51.5%, an increase of 0.9 percentage points from the previous month, indicating that the prosperity level of large enterprises is stable and rising; The PMI of medium-sized enterprises was 49.4%, which is still below the line of growth and contraction, but increased by 0.2 percentage points from the previous month, indicating that the economic level has improved. Small business PMI was 47.5%, down 1 percentage point from the previous month, indicating that the economic level has fallen.

  From the perspective of market expectations, the expected index of production and business activities reached 54% in October, an increase of 2 percentage points from the previous month, and the highest point in nearly four months. This indicates that business confidence has increased as positive factors driving the economic recovery are increasing.