China's manufacturing activity slightly grew in October, final results of a business survey by "Markit Economics" and the British bank HSBC Ltd., showed Monday. The HSBC China Manufacturing Purchasing Managers Index (PMI), a gauge of nationwide manufacturing activity of the world's second-biggest economy, rose to 50.4 percent from September's final reading of 50.2 on a 100-point scale. The index was unchanged from a preliminary reading announced late last month. A PMI reading above 50 percent indicates growth from the previous month, while a reading below 50 represents contraction in China's manufacturing sector.
The index is a closely watched barometer of the health of the Chinese economy. "Overall, the manufacturing sector continued to stabilize in October, however the sequential momentum likely weakened," HSBC economist Qu Hongbin said in a statement accompanying the report.
"The economy still shows clear signs of insufficient effective demand. We still see uncertainties, given the property downturn as well as the slow pace of global recovery, and expect further monetary and fiscal easing measures in the months ahead," Qu added.
China's economic growth grew 7.3 percent year-on-year in the third quarter, the slowest pace of expansion since the first quarter of 2009. The HSBC final PMI came after China's National Bureau of Statistics said Saturday its official PMI slowed to 50.8 last month, down from September's 51.1.