China: June manufacturing gauge hits six-month high
July 1, 2014
The Purchasing Managers Index (PMI) inched up from 50.8 points in May to 51.0 points in June according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP), which publish the index. June’s print was in line with market expectations and represented the highest level since December 2013. The PMI is still resting just above the 50-point threshold that separates expansion from contraction in the manufacturing sector, where it has idled since September 2012.
June’s figure reflected an increase in four of the five sub-categories of the index, with new orders and employment recording the largest monthly gains. The production and the supplier delivery time sub-indices also strengthened in June, whereas inventories of finished goods were unchanged. In addition, new exports orders hit a seven-month high in June, while input prices—a reliable leading indicator for consumer prices—jumped to the highest level since December 2013.