China's economic vitality continues to improve: official

China's purchasing managers index for the manufacturing sector improved for the second consecutive month in October to a six-month high of 50.1, recovering back to the expansionary territory, the National Bureau of Statistics said on Thursday.

The official manufacturing PMI came in at 50.1 this month, up from 49.8 in September and above the 50-mark that separates expansion from contraction, the NBS said, mostly driven by accelerated production activity.

"With the introduction of a package of incremental policies and the effects of existing policies gradually emerging, China's economic vitality has continued to pick up in October," said Zhao Qinghe, an NBS statistician.

The sub-index for production rose from 51.2 last month to 52 in October, while new orders edged up to 50 from 49.9 in September, with such industries as general equipment, automobile, and electrical machinery registering a rapid growth of production and demand, and witnessing the two sub-indexes standing above 54 this month.

Prices in the manufacturing sector recovered as the sub-gauge for the main raw material purchase prices jumped from 45.1 to 53.4 amid rising commodity prices while the factory-gate price gauge rose to 49.9 from 44 last month, the NBS said.

Overall business activity accelerated as the composite PMI, covering both manufacturing and non-manufacturing sectors, came in at 50.8, up from 50.4 in September. The PMI for non-manufacturing sectors rose from 50 in September to 50.2 in October.

However, the bureau said the PMI for small manufacturers dropped from 48.5 in September to 47.5 this month, pointing to weakening operating conditions.