Chinese manufacturing activity expanded at its fastest pace in two-and-a-half years during October, a private survey showed on Friday, as export orders rose in defiance of trade tensions with the US.
The Caixin China General Manufacturing purchasing managers’ index posted a reading of 51.7 during the month, up from 51.4 in September and its highest since February 2017. That marks the third month in a row that the survey has produced a reading above 50, the line which separates expansion from contraction. Economists polled by Reuters had expected manufacturing expansion to cool to 51 during October.
The Caixin survey found that companies’ output and new orders rose on the back of the first increase in new export orders in five months. It said that this was likely due to Washington exempting about 400 types of Chinese products from tariffs during the month. The total amount of new work received by Chinese producers rose by its highest clip in about six years, prompting manufacturers to expand production.