China PMI January 2016


China: Manufacturing conditions deteriorate sharply at the outset of the year

February 1, 2016

The Purchasing Managers’ Index (PMI) in January fell from the previous month’s 49.7% to 49.4%, according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP), which publish the index. The print undershot the 49.6% that market analysts had expected and represented the lowest reading since August 2012. As a result, the PMI is sitting further below the 50%-threshold that separates contraction from expansion in the manufacturing sector.

January’s reading reflected a broad-based deterioration as all but one of the main components of the index lost ground compared to the previous month. Both new orders and inventories dipped to an over three-year low in January, while the all-important production gauge, despite remaining entrenched in positive territory, fell to an 11-month low. On the other hand, employment improved marginally in the same month. Although input prices—a reliable leading indicator for consumer prices—jumped to a four-month high in January, it remained deeply mired in contractionary territory. New export orders receded mildly in January, highlighting weak global demand.


Sample Report

Looking for forecasts related to PMI in China? Download a sample report now.


China PMI Chart

China PMI January 2016

Note: Purchasing Managers’ Index. Readings above 50% indicate an expansion in the manufacturing sector while readings below 50% indicate a contraction.
Source: National Bureau of Statistics of China (NBS) and the China Federation of Logistics and Purchasing (CFLP).

China Economic News

More news

Search form