PMI heads for 7-month high

Rising domestic demand provides firm basis for expansion in the industrial sector

British bank HSBC Holdings Plc said that China's manufacturing Purchasing Managers' Index will rise to a seven-month high of 50.9 in October, up from 50.2 in September, suggesting the overall economic growth momentum is likely to be extended after the recovery seen in the third quarter.

Stronger domestic demand supported a rise in the output sub-index to 51 - a six-month high - compared with a reading of 50.2 for the sub-index in September, HSBC's flash PMI data showed.