China: PMI stabilizes at low levels in October
November 1, 2015
The Purchasing Managers’ Index (PMI) in October stabilized at the previous month’s 49.8%, according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP), which publish the index. The print just undershot the 50.0% that market analysts had expected. The PMI is still sitting below the 50%-threshold that separates contraction from expansion in the manufacturing sector.
October’s reading reflected that an improvement in new orders, which hit a five-month high, was offset by lower readings in the rest of the main components. Particularly, the employment category fell to an eight-month low, sinking to its lowest level in over three years. Input prices—a reliable leading indicator for consumer prices—dipped to an eight-month low in October, highlighting the severe disinflationary pressures that the Chinese economy is facing. New export orders also fell sharply in October, suggesting softening external demand.