Beijing's September stimulus package shows first signs of success as manufacturing activity expands beyond expectations. October's Caixin PMI hit 50.3, breaking through the critical 50-point mark and surpassing analyst projections of 49.7. While domestic orders surged, pushing output to a 4-month high, the labor market tells a different story with the sharpest workforce reduction since mid-2023. Material costs are trending upward again after a two-month decline.