Analysts said that on the back of recent policy support from the Chinese government, Chinese factory activity turned to growth in October, ending five consecutive months of contraction and suggesting that domestic demand may be recovering. He said there was.
“The recent improvement has been driven by stronger domestic demand,” said Julian Evans-Pritchard, head of China economics at Capital Economics, noting that readings above 50 typically indicate expanding economic activity. Ta.
But analysts say that while there are signs that the domestic situation is gradually improving, it is still too early to tell whether policy support will be enough to help the world’s second-largest economy regain stable footing. did.
Lin Song, chief economist for Greater China at ING, said while the numbers represented only a slight expansion, they were still “upbeat that the modest recovery in industrial production seen in September could continue.” It’s a sign,” he said.
“Going forward, we need to see whether the rollout of economic stimulus measures can lead to a recovery in domestic demand and offset a possible softening in external demand,” he added.
