Construction improves in Oct despite slowdown

SHANGHAI, Oct 31 (SMM) – While growth in the services industry cooled in October, construction activity improved, indicating that the Chinese givernment's infrastructure push may be taking hold.

The National Bureau of Statistics said that its China-based purchasing managers' index (PMI) for manufacturing stood at 50.2 for October, the lowest since July 2016 and down from 50.8 in September.

A reading above 50 indicates expansion, while a reading below signals contraction.

Official services PMI also fell to 53.9 in October from 54.9 in September. However, a sub-index of construction activity rose to 63.9, matching the December 2017 record high and standing 5.4 higher than the corresponding month of 2017.

On a month-on-month basis, the construction component saw its new orders index gain 0.5 to 56.2 and the business activities expectation index gain 0.9 to 66. This reflected steady demand across the domestic construction markets and confidence among builders.