HSBC China Composite PMI™ data (which covers both manufacturing and services) signalled an expansion of output for the third consecutive month in October. Moreover, the HSBC Composite Output Index posted 51.8, up from 51.2 in September, and signalled the joint strongest rate of growth in seven months, on par with August.
Output increased for the third month running at manufacturers in October, with the rate of growth the strongest since April. Meanwhile, business activity continued to rise at service providers, and at a slightly
faster pace than in September. Though modest, the rate of services activity growth was one of the fastest in 2013 so far, as signalled by the HSBC China Services Business Activity Index posting at 52.6, up from 52.4 in September.
New business rose at both manufacturers and service providers during October. Goods producers recorded a moderate expansion, while service providers saw a solid increase in new work that was the fastest in seven months. Consequently, new business increased for the third successive month at the composite level, and at the quickest pace since March.
Manufacturers signalled a renewed expansion of workforce numbers in October, while employment increased for the second successive month at service providers. However, the rates of expansion were only slight in both cases. As a result, payroll numbers at the composite level increased
marginally, ending a six-month sequence of job losses.
In October, outstanding business at manufacturers rose at the fastest pace since March 2011, amid reports of improved demand. Meanwhile, service providers signalled a lower amount of backlogged work for the fifth successive month. That said, the rate of depletion was in line with the
average for the current sequence and only marginal. At the composite level, work-in-hand increased for the third month in a row and at a moderate pace.