Economics

China Industry Gauge Rises as Easing Prospects Abate

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A Chinese manufacturing index rose and economists have pared forecasts for cuts in interest rates and bank reserve requirements as confidence grows that the world’s second-biggest economy is stabilizing.

The preliminary, or flash, reading was 49.1 for a purchasing managers’ index released today by HSBC Holdings Plc and Markit Economics, after a final level of 47.9 for September. China will probably keep the benchmark one-year lending rate at 6 percent through the end of 2012, based on median estimates in a survey conducted Oct. 18-22, instead of prior forecasts for a quarter percentage-point reduction.