While demand improves in October, power shortages and rising costs weighs on production, manufacturers say.
China’s manufacturing activity ticked up in October from a month ago, signaling a renewed improvement in the sector thanks to recovery in demand, according to data released on Monday.
The Caixin China General Manufacturing Purchasing Managers’ Index (PMI) climbed to 50.6 last month, up from 50 in September. The rate of growth was the strongest recorded since June, London-based global data firm IHS Markit said.
New orders rose to the greatest extent in the last four months reflecting stronger domestic demand, it stressed.
However, production fell for the third month in a row due to limited power supply, material shortages and rising costs in the month.
“Supply chain delays became more widespread in October, with average lead times for inputs increasing at the fastest rate since March 2020,” it noted.
Input prices rose sharply in the month with higher costs for materials, energy and transport.
“Consequently, output charges also rose at a notably quicker rate during October,” it said.