China: Manufacturing PMI edges down in January
January 31, 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 slightly to 51.3 points in January from 51.6 points in December. The result came in below market analysts’ expectations. Nevertheless, the index remains above the 50-point threshold that separates expansion from contraction in the manufacturing sector.
Looking at sub-components of the index, January’s reading was driven by a slower expansion of new orders and production, followed by an steeper decrease in employment and slower delivery times. On the other hand, the index for inventories of raw materials edged up, signaling that input stocks decreased at a slower rate than in the previous month.
The index for input prices—a reliable leading indicator for overall inflation—fell in January, signaling a deceleration in price increases. Export orders fell below the 50-point threshold for the first time in over a year, pointing to a worsening external demand.
Author: Joffrey Simonet, Economist