China: PMI improves for second consecutive month, reaches 16-month high
September 1, 2013
The Purchasing Managers Index (PMI) rose from 50.3 points in July to 51.0 points in August according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP) which publish the index. The increase marks the second consecutive month of improvement and the highest reading since April 2012. The print also overshot market expectations that saw the index inching up to 50.6 points. The index remains above the 50-point threshold that separates expansion from contraction in the manufacturing sector.
August's improvement reflected an across-the-board increase in the sub-categories of the PMI. New orders reached the highest level in 16 months. Exports orders bounced back into expansion territory, after spending four consecutive months below 50 points. Moreover, input prices - a reliable leading indicator for consumer prices - reached its highest level in six months.