China: Manufacturing PMI improves in February
March 1, 2017
The manufacturing Purchasing Managers’ Index (PMI) rose from January’s 51.3% to 51.6% in February, according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP), which publish the index. The reading was above the 51.2% that market analysts had expected. As a result, the index rests comfortably above the 50% threshold that separates expansion from contraction in the manufacturing sector.
February’s reading reflected a broad-based improvement as all of the sub-components of the index gained ground compared to January’s result. Employment prospects hit a nearly four-year high and inventories climbed to a 20-month high. Moreover, production and new orders expanded further into positive territory. Despite declining slightly, input prices—a reliable leading indicator for producer prices—remained at high levels, suggesting that overall inflationary pressures are still strong. New exports jumped to a nearly three-year high, signaling that global demand is picking up.