China: PMI inches up in September, remains in negative territory
October 1, 2015
The Purchasing Managers’ Index (PMI) rose slightly from August’s three-year-low of 49.7% to 49.8% in September, according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP), which publish the index. The print overshot the 49.7% that market analysts had expected. Despite the increase, the PMI sits below the 50%-threshold that separates contraction from expansion in the manufacturing sector.
September’s reading reflected an improvement in production output as well as in new orders. The supplier delivery times category also gained ground in September, while unemployment was unchanged. Conversely, inventories declined to an eight-month low in the same month. Although the input prices—a reliable leading indicator for consumer prices—rose in September, they remained firmly entrenched below the 50%-threshold. Although new export orders recovered slightly from August’s 26-month low, they still suggested softening external demand.