China: Manufacturing PMI stabilizes in September
October 1, 2016
The Purchasing Managers’ Index (PMI) was stable at August’s 50.4% in September, according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP), which publish the index. The reading was in line with what market analysts had expected and remained at the highest point that has been recorded since October 2014. The PMI is still above the 50% threshold that separates expansion from contraction in the manufacturing sector.
September’s reading reflected that stronger production and employment prospects, which hit a 27-month high, were offset by weaker prints in inventories, new orders and suppliers’ delivery times. Input prices—a reliable leading indicator for producer prices—increased to a five-month high, suggesting that deflationary forces are gradually abating. Moreover, new exports rebounded in September and jumped to positive territory for the first time in five months.