Beijing (AFP)
Manufacturing activity in China dipped slightly in October, according to official figures released on Saturday, but still remains in positive territory, confirming the recovery in the country.
The official purchasing managers index (PMI) for the month of October stood at 51.4, down slightly from September (51.5).
A number greater than 50 indicates an expansion of activity and, below, it indicates a contraction.
In February, the index had fallen to 35.7 points as the new coronavirus shut down most companies in China.
According to Zhao Qinghe, a statistician with the National Bureau of Statistics, the October figure with increases in several sectors, including exports, imports and new orders, reflects "a strong recovery".
"Manufacturing activity in major economies is rebounding ... and the recovery in demand has led to higher prices," Zhao said.
The increase in demand has been particularly strong for textiles, chemicals, chemical raw materials or plastic and rubber products used to fight the coronavirus pandemic, he detailed.
"The second wave of Covid-19 outside China could support Chinese exports but also delay the total recovery of the Chinese services sector, as Beijing must remain vigilant," said Lu Ting, chief economist for China at within the Japanese bank Nomura.
China is expected to be one of the few major countries to report positive growth in 2020 by the end of the year.
The world's second-largest economy grew 4.9% year-on-year in the third quarter.
The International Monetary Fund (IMF) nearly doubled its forecast for economic growth for China in 2020, to 1.9%, citing a "faster-than-expected return to normal" after the country paralyzed in the first quarter due to 'epidemic.
© 2020 AFP