China: PMI reaches one-year high in March
April 1, 2013
In March, the Purchasing Managers' Index (PMI) published by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP) rose to 50.9 points, up from 50.1 points in February. The March print represented the highest level recorded since April 2012 and came in broadly in line with market expectations, which had expected the index to rise to 51.0 points. As a result, the PMI remained above the 50-point threshold that separates expansion from contraction in the manufacturing sector for the sixth consecutive month.
The improvement observed in March was broad-based, as all but one of the sub-categories that compose the index gained some ground over the previous month. The largest advances were seen in the supplier delivery time sub-index as well as in new orders. On the other hand, raw material inventories deteriorated over the previous month. Meanwhile, export orders hit their highest level in 11 months, whereas the input prices category - which is a reliable leading indicator for consumer prices - dipped to 50.6 points.