China: Growth momentum in manufacturing PMI softens in December
January 1, 2017
The Purchasing Managers’ Index (PMI) fell from November’s over two-year high of 51.7% to 51.4% in December, according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP), which publish the index. While the reading slightly undershot the 51.5% that market analysts had expected, it rests comfortably above the 50% threshold that separates expansion from contraction in the manufacturing sector.
December’s reading reflected a deterioration in production, inventories and employment prospects. Conversely, the suppliers’ delivery time category improved in December after falling to a nearly four-year low in November, while new orders were stable. Input prices—a reliable leading indicator for producer prices—continued their upward race and hit the highest point since early 2011, signaling tighter supply conditions and suggesting that overall inflationary pressures are on the rise. Despite receding slightly, new exports remained in expansionary territory in December.