China: Manufacturing PMI jumps to six-year high in September
September 30, 2020
The manufacturing Purchasing Managers’ Index (PMI) published by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP) rose from 51.0% in August to 51.5% in September. The print was above the 51.2% expected by market analysts and represented the strongest result in six months. As a result, the index remained above the 50.0% threshold that separates expansion from contraction in the manufacturing sector.
September’s rise was the result of higher readings for all the sub-components of the index. Inventories posted the largest increase followed by all-important output and new. As a result of the easing of the global lockdown, export orders jumped above the 50% threshold for the first time in nine months. Meanwhile, input prices—a reliable leading indicator for producer inflation—hit a two-year high.