China: PMI stabilizes in April
May 1, 2015
The Purchasing Managers’ Index (PMI) was unchanged in April at the previous month’s 50.1%, according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP), which publish the index. As a result, the PMI remains slightly above the 50%-threshold that separates contraction from expansion in the manufacturing sector for the second consecutive month. The print slightly overshot the 50.0% that market analysts had expected.
April’s reading reflected an improvement in manufacturing output, the supplier delivery times category and inventories, while new orders were unchanged from last month’s figure. On the downside, job conditions worsened in the same period. Although input prices—a reliable leading indicator for consumer prices—hit an eight-month high, the variable remains firmly entrenched below the 50%-threshold, thereby signaling strong disinflationary pressures.