China: The PMI falls to eight-month low in February
March 1, 2014
The Purchasing Managers Index (PMI) fell from 50.5 points in January to 50.2 points in February according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP), which publish the index. February's print marked the lowest reading since June 2013, although it did slightly exceed the 50.1 points that market analysts had expected. As a result, the PMI is currently resting just above the 50-point threshold that separates expansion from contraction in the manufacturing sector.
February's figure reflected a broad-based deterioration with all but one of the sub-categories recording lower readings compared to the previous month. Both new orders and production output registered the largest drops. Exports orders recorded an eight-month low, while input prices - a reliable leading indicator for consumer prices - dipped to the lowest level since June 2013.