China’s manufacturing sector accelerated in October to its strongest reading in 18 months, suggesting continued expansion in the world’s most important manufacturing sector. The improved headline official purchasing manager’s index is likely to boost market sentiment towards China and China-dependent assets such as the Australian dollar, but sub-indices for new orders and new export orders dipped last month, raising concerns that momentum might not be sustained for the rest of the fourth quarter. The official PMI came in at 51.4 in October, compared with 51.1 in September, according to the China Federation of Logistics and Purchasing. A reading above 50 indicates expansion in the manufacturing sector, while a reading below 50 indicates contraction. The closely watched index has been positive for more […]