Chinese factory activity strengthened for the first time in six months in October, in a heartening signal for policymakers as they prepare a crucial fiscal package to support the world’s second-largest economy.
The figures represent the last data release before a meeting next week of the standing committee of China’s rubber-stamp parliament, the National People’s Congress, which is expected to confirm the size of a fiscal stimulus to try to boost economic growth.
This month’s official purchasing managers’ index came in on Thursday at 50.1, higher than 49.8 in September and stronger than the average forecast of 49.9 by analysts polled by Bloomberg. A reading above 50 marks an expansion from the previous month.