China PMI

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China: Manufacturing sector shows unexpected improvement

August 1, 2013

The Purchasing Managers Index (PMI) rose from 50.1 points in June to 50.3 points in July. The PMI, which is published by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP), overshot market expectations that had the index falling to 49.8 points. The figure remains above the 50-point threshold that separates expansion from contraction in the manufacturing sector for the ninth consecutive month.

July's improvement reflected higher readings in all but one of the sub-categories that compose the index. Production output and unemployment figures saw the largest improvement, whereas supplier delivery time deteriorated over the previous month. Export orders - although remaining in the red - recovered some lost ground. The input prices category, a reliable leading indicator for consumer prices, reached its highest level in four months.


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China PMI July 2013

Note: Purchasing Managers' Index. Readings above 50 points indicate an expansion in the manufacturing sector while readings below 50 points indicate a contraction.
Source: National Bureau of Statistics of China (NBS) and the China Federation of Logistics and Purchasing (CFLP).


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