China: PMI inches up in September
October 1, 2013
The Purchasing Managers Index (PMI) edged up from 51.0 points in August to 51.1 points in September according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP) which publish the index. The increase marks the third consecutive month of improvement and the highest reading since April 2012. The print, however, undershot market expectations that saw the index rising to 51.6 points. The index remains above the 50-point threshold that separates expansion from contraction in the manufacturing sector.
September's improvement reflected increases in the majority of the sub-categories of the PMI. Raw materials recorded the largest monthly gain and new orders reached the highest level in 17 months. Job prospects, however, deteriorated over the previous month. Meanwhile, exports orders continued to improve after bouncing back into expansion territory in the previous month. Moreover, input prices - a reliable leading indicator for consumer prices - reached its highest level in seven months.