- Preliminary purchasing managers' index hit 49.1, the highest level in three months.
- Figure represents 12th consecutive month of contraction, but second of improvement
- A reading above 50 indicates growth
China's manufacturing sector showed signs of recovery on Wednesday as an HSBC survey provided fresh evidence that the worst may be over for the world's No. 2 economy.
The preliminary purchasing managers' index (PMI) released by the British banking giant hit 49.1 this month, the highest level in three months and up from 47.9 in September.
A reading above 50 indicates growth and anything below points to shrinkage.
While the figure marks the 12th straight month of contraction, it is also the second consecutive monthly improvement and adds to recent indications the economy is on the mend after a slowdown stretching back to last year.
The indications also come at an important time politically as the country prepares for a once-a-decade leadership change at a Communist Party meeting that starts on Nov. 8.
The index, compiled by information services provider Markit and released by HSBC, tracks manufacturing activity and is a closely watched barometer of the health of the economy.
China's official PMI figure was 47.9 for September.
October's official figures are expected on Nov. 1, the same day HSBC will release its final result.
