Oil inches up on strong Chinese economic data

Brent’s price felt some upward pressure after manufacturing PMI in China exceeded expectations in October.

PHOTO: Flag of the US and China. Getty Images

China's Manufacturing Purchasing Managers' Index (PMI) reading came in at 50.1% in October, up from 49.8% achieved in the previous month, the country’s National Bureau of Statistics (NBS) reported.

The data shows some growth in China’s manufacturing sector, leaving room for more measures to boost economic growth in the country. Meanwhile, in the US, manufacturing activity contracted in October for the seventh consecutive month, the Institute for Supply Management (ISM) said.

Manufacturing PMI in the world’s largest oil consumer came in at 46.5% in October, declining from the 47.2% growth achieved in September, according to the ISM data.

A PMI reading below 50 typically indicates weak economic health and a contraction in the manufacturing sector, which includes production, inventory levels, new orders, etc. It also highlights demand growth concerns, ultimately weighing down on prices of commodities like oil.

By Aparupa Mazumder

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