China: Manufacturing PMI declines to seven-month low in September
September 30, 2018
The manufacturing purchasing managers’ index (PMI) published by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP) fell from 51.3% in August to 50.8% in September. The print represented the lowest reading in seven months and came in below market expectations of a softer dip to 51.2%. The index, however, remains above the 50% threshold that separates expansion from contraction in the manufacturing sector, where it has been for more than two years.
September’s decline reflected a general deterioration in manufacturing conditions as all but one of the subcategories posted lower readings compared to the previous month’s print. Both job prospects and stocks of inventories recorded the sharpest declines. All-important new orders and output posted smaller drops. On the upside, supplier delivery times improved slightly in September. New export orders declined to a near three-year low, reflecting the rise in trade tensions with the United States. Input prices continued to rise in September due to high commodity prices, especially for oil.