China's manufacturing activity expanded in October thanks to rising new orders, a survey from HSBC showed on Thursday.
The HSBC flash Purchasing Managers' Index (PMI) stood at a seven-month high of 50.9 in October, up from 50.2 in September and above the key 50-mark which separates expansion from contraction.
The survey is the first snapshot of how manufacturing in the world's second-largest economy is faring this month. New orders rose to 51.6, the highest in seven months.
"October's HSBC flash China manufacturing PMI rose to a seven-month high of 50.9 on the back of broad-based modest improvements," said Hongbin Qu, chief economist for China and co-head of Asian economic research at HSBC.
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"This implies that China's growth recovery is becoming consolidated into the fourth quarter following the bottoming out in the third quarter. This momentum is likely to continue in the coming months, creating favorable conditions for speeding up structural reforms," he said.