China flash manufacturing PMI - Sept 2014

The latest manufacturing PMI print for October has just been released with the index rising 0.2pts to 50.4, a 3-month high.

While a good headline print, the internals of the report were hardly inspiring with output, new orders, new export orders, backlogs and purchase quantities all growing at a slower pace than September. In what is another sign of disinflation, both input and output prices declined at a faster rate than a month earlier.

With most of the sub-components weakening, stocks of finished goods pushing into expansionary territory, hardly a strong outcome given weakness in future orders, along with a slower decline in employment numbers, were the chief catalyst behind the jump in the headline index.


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