Huatai Securities: Holiday mismatches drag down October manufacturing PMI.

Huatai Securities commented on the October manufacturing PMI data, stating that the October manufacturing PMI fell to 49%, down from 49.8% in September, also weaker than the seasonal levels in previous years. The non-manufacturing business activity index rose slightly to 50.1% in October from 50% in September, partly reflecting disruptions due to holiday misalignment and a decrease in production-related activities compared to working days. Overall, industrial production and export readings in October may also be somewhat disrupted under the influence of holiday misalignment, while consumption indicators may receive marginal boosts. Looking ahead, considering that the PMI indicators are still in a weak range, countercyclical policies need to be further strengthened to boost manufacturing sentiment.