Last month, the Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) soared to the maximum values in almost a decade amid strong domestic demand. Notably, the reading was the highest since January 2011.

In October 2020, China’s Manufacturing PMI amounted to 53.6, which was better than market consensus and September's figure of 53.0. Importantly, the gauge that separates growth from contraction has been staying above the 50-level for the sixth consecutive month.

Experts forecast the reading to remain steady at 53.0. It means that China's industrial sector is steadily recovering to the levels logged before the pandemic. Pent-up demand, stimulus measures from the government, and resilient exports propelled the manufacturing revival. "Recovery was the word in the current macro economy, with the domestic epidemic under control. Manufacturing supply and demand improved at the same time. Enterprises were very willing to increase inventories. Prices tended to be stable. Business operations improved, and entrepreneurs were confident," Wang Zhe, senior economist at Caixin Insight Group, said.

According to the National Bureau of Statistics of China’s report published on October 31, China recorded a slight slowdown in industrial activity. In October, the PMI index fell to 51.4 compared to 51.5 recorded in September 2020.