China: Manufacturing PMI inches down in December
December 31, 2017
The manufacturing purchasing managers’ index (PMI) fell from November’s 51.8% to 51.6% in December, according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP) that publish the index. The result was in line with what market analysts had expected. Nevertheless, the index is resting comfortably above the 50% threshold that separates expansion from contraction in the manufacturing sector.
December’s print reflected weaker readings in all the sub-components of the manufacturing PMI. Inventories recorded the largest decline in December followed by the production and job creation categories. Input prices—a reliable leading indicator for overall inflation—increased in December, reflecting higher commodity prices. Export orders climbed to a six-month high, pointing to robust global demand.