China: PMI declines to five-month low in October
November 1, 2014
The Purchasing Managers’ Index (PMI) fell from 51.1% in September to 50.8% in October, according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP), which publish the index. October’s print represented the lowest reading in five months and undershot the 51.1% that market analysts had expected. That said, the PMI remains above the 50%-threshold that separates expansion from contraction in the manufacturing sector, where it has idled since September 2012.
October’s reading reflected deteriorations in manufacturing output, new orders and inventories, which suggest that industrial production will remain soft in October. Job conditions, although remaining in the red, were up in October, while supplier delivery was stable. In addition, new exports orders fell into negative territory in October, while input prices—a reliable leading indicator for consumer prices—hit a seven-month low.