Activity in China's factories returned to expansion territory in October after stagnating in September, a private gauge showed, in contrast with official data that showed weaker expansion.
The Caixin China manufacturing purchasing managers' index edged up to 50.1 in October from 50.0 in September, Caixin Media Co. and research firm Markit said Thursday. The 50 level separates an expansion in manufacturing activity from a contraction.
Total new orders expanded slightly in October while new export orders recovered but remained in negative territory, said Caixin.
A subindex for production dropped for the second straight month in October but remained in positive territory, which was in line with recent significant drop in value-added industrial output despite a rise in manufacturing investment, said Zhengsheng Zhong, an economist at CEBM Group.
The Caixin PMI showed improvement while the official manufacturing PMI released on Wednesday showed a decline to 50.2 in October from 50.8 in September.
The Caixin China Manufacturing PMI is based on data compiled from monthly replies to questionnaires sent to purchasing executives at more than 400 manufacturing companies.