BEIJING (AFP) ― China’s manufacturing growth picked up to a three-month high in October, a closely watched private survey confirmed Monday, but did little to counter a picture of slowing growth in the world’s second-largest economy.

British bank HSBC’s final purchasing managers index came in at 50.4 last month, above the 50-point level that separates expansion and contraction and the strongest since July’s 51.7.

The index tracks activity in factories and workshops and is considered a key indicator of the health of China’s economy, a major driver of global growth.

On Saturday China’s official PMI from the National Bureau of Statistics came in at 50.8 last month, lower than the 51.1 recorded in September.

HSBC’s figure was the same as its preliminary result announced last month and higher than the 50.2 recorded in September, “but nonetheless continued to signal only a fractional improvement in the health of the sector,” the bank said in a release.

Qu Hongbin, HSBC economist in Hong Kong, added that while the figure indicates continuing stabilization of the sector, the overall situation remains fragile.

“The economy still shows clear signs of insufficient effective demand,” Qu said in the release.

“We still see uncertainties, given the property downturn as well as the slow pace of global recovery, and expect further monetary and fiscal easing measures in the months ahead.”