Survey shows China manufacturing industry expanded at modest pace in Oct even as output lags

Economic Indicators Associated Press

A gauge of the health of China's manufacturing industry inched higher in October but factory output was at a five-month low in a sign of slowing domestic and foreign demand.

Continue Reading Below

HSBC said Thursday the preliminary version of an index based on a survey of factory purchasing managers rose to 50.4 from 50.2 in September. Figures above 50 on the 100-point scale indicate expansion.

HSBC's chief China economist Hongbin Qu said manufacturing likely stabilized in October but the "economy continues to show signs of insufficient effective demand."

Earlier this week, China reported economic growth in the third as growth based on trade and industrial investment runs out of steam.