China: PMI declines to four-month low in June
July 1, 2013
The Purchasing Managers' Index (PMI) published by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP) fell from 50.8 points in May to 50.1 points in June, which marks the lowest level observed since February. That said, the print was in line with market expectations. As a result, the PMI remains slightly above the 50-point threshold that separates expansion from contraction in the manufacturing sector for the eighth consecutive month and now sits 0.1 points below the level recorded in the same month last year.
The deterioration seen in June was broad-based, as all the sub-categories that compose the index lost some ground over the previous month. The largest loss was seen in new orders, followed by a notable decrease in the production sub-index. Meanwhile, export orders fell to their lowest level in four months, while the input prices category - which is a reliable leading indicator for consumer prices - dipped further into the red.