China reported its official Purchasing Managers' Index (PMI) at 51.2 for the month of October.

The index measures large state-owned corporations. The index data surpassed market expectations and also broke two months streak of flat performance. Reuters expected the PMI index to be at 50.4, same as in the months of August and September.

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China has been experiencing a decline in its manufacturing sector's contribution to its economic growth as the country is making a transition from a production-based economy to consumption-driven market. However, October data shows that that manufacturing sector is picking up again. The country's Caixin manufacturing PMI showed the highest rate of growth in October since March 2011. The index shows that the Chinese economy is stabilizing.

China's economy received a fillip from increased government spending and booming the country's real estate market. The economy grew by 6.7 percent during the third quarter of the year. It seems to be on its way to hit the full-year target of 6.5 to seven percent growth. China also reported vibrant factory output in the month of October. The sub-index pertaining to factory output stood at 53.3, up from 52.8 in September.

China's service sector also showed growth as a business survey showed that the country's sector is growing at the fastest rate since December 2015. The official reading for the sector reported 54.0, up from 53.7 in the month of September. The country's construction industry index showed a marginal decline to 61.8 in October, down from 61.9 reading in September. China's financial services sector index declined during the month of October. However, the services employment sub-index remained flat, indicating that companies may have held back from laying off staff. 

Tagspurchasing managers' index, Caixin manufacturing PMI, china