China’s manufacturing output swings back into expansion in October, private survey finds

China's factory activity swung back into expansion among smaller manufacturers in October, according to a private survey released on Friday.

The Caixin/S&P Global manufacturing purchasing manager's index came in at 50.3 in October, beating the median estimate of 49.7 in a Reuters poll. 

The reading was 49.3 in September, 50.4 in August and 49.8 in July. A PMI reading above 50 indicates expansion in activity, while a reading below that level points to contraction.

This private gauge comes after the official PMI data, released Thursday, indicated that manufacturing activity in the country expanded for the first time since April. The Caixin series tends to be more focused on exporters and private sector companies compared to the official PMI data, which comprise of bigger and state-owned firms.

"Supply and demand both expanded. Overall market demand recovered, while production grew steadily," Wang Zhe, a senior economist at Caixin Insight Group, said in the survey release.

Incoming new orders placed with Chinese manufacturers also increased at the quickest pace in four months on the back of "underlying demand conditions and successive new business development endeavors," according to the release.

Caixin, however, noted that export orders remained in decline, though the rate of reduction eased in the latest survey period, and employment fell again, meaning manufacturers had stayed cautious when it came to workforce numbers.

The latest reading is "definitely encouraging for the market," said Andy Maynard, managing director at China Renaissance, and a good sign that the blitz of stimulus measures rolled out by the Chinese government back in September are "obviously well received."

In September, the People's Bank of China cut the