HSBC launches October China manufacturing PMI strong domestic demand drives growth

China's manufacturing business continues to be good, growth grew to the highest since April, with new business growing mainly from the Purchasing Managers ' Index (PMI), released today (November 1) by the HSBC China Manufacturing report (Zhang Yuzhe), of the domestic market, the fourth quarter, when China's manufacturing sector continued to be in good shape, Growth increased to the highest since April.　　The seasonally adjusted HSBC China Manufacturing PMI10 Month was 54.8 higher than last month (52.9), and the quarter-on-quarter increase was one of the highest since the survey began in April 2004. Manufacturing output surged in October this year. For now, the trend has lasted for three months, and this month grew at its fastest rate since January this year.　　As for the reasons for the increase in production, the respondents generally believe that the increase in the volume of new business. China's manufacturing sector, in October, has risen sharply, at a new six-month high.　　However, the overall increase in new business is greater than the increase in new export orders, indicating that the growth of new business in October was mainly attributable to the domestic market. As of October, the backlog has been on the rise for four consecutive months, but the October growth rate has been modest.　　Surveys show that the increase in unfinished business indicates a strong growth in the new business. In October, the average investment cost of manufacturing in China rose sharply, the fastest pace since July 2008. Since July this year, PMI's input price index has risen by more than 31 points, which shows that the inflationary pressures in the manufacturing sector have risen rapidly. The survey showed that prices of coal, cotton, grain and steel were higher than in September.　　The cost increases also include measures to reduce emissions to meet national requirements, government rationing, and rising global commodity futures prices. Chinese manufacturing products increased further in October, a 27-month high. At present, output prices have risen for three consecutive months, and the October increase is larger than the long-term value.　　The main reason for the rise in the factory price is the increase in input costs, manufacturers need to increase the cost to maintain business space. "This shows that despite the slow growth of new export orders, the strong growth in domestic demand will ensure a 9 per cent growth in the fourth quarter," said Qu Hongbin, China's chief economist and head of Economic Research Asia Pacific, commenting on the findings of China's manufacturing PMI survey. The rise in factory prices reflects the increase in input costs under strong demand, which also suggests that the CPI is likely to continue to rise in October and reach a cyclical peak. "The HSBC China Manufacturing report sends questionnaires to purchasing directors of more than 400 manufacturers each month and prepares reports based on recycled data." According to the data collected in the middle of each month, the results of the survey reflect changes in the month compared to the last.