The reading means that growth in Chinese manufacturing is still slowing, but more buoyant than last month.
HSBC purchasing manager's index stabilises in October - recovery in sight
THE Hong Kong Shanghai Banking Corporation (HSBC) manufacturing index showed an increase in Chinese factory orders, a sign that the industrial sector has been stabilising after two years of sluggish growth, reports London's Financial Times.
The bank's flash China manufacturing purchasing managers' index (PMI), an early reflection of the health of factory orders, rose to 49.1 this month from 47.9 in September.
The reading means that growth in Chinese manufacturing is still slowing, but more buoyant than last month.
Analysts said that the results make a future increase in government stimulus less likely.
Said Barclay's China economist Jian Chiang: "The better October flash PMI and September data paint a consistent picture of a likely further pick-up in economic activity on the back of more accommodative monetary conditions, increasing infrastructure investment, recovering property market activity and improved external demand."