1 Nov 2016
PMI Report on China Manufacturing Nov 2016
PMI rises to 51.2 in October
Output, New Orders, Purchases of Inputs, Expanding. New Export Orders, Stocks of Finished Goods, Backlogs of Orders, Imports, Stocks of Major Inputs, Contracting. Input Prices, Rising. Suppliers’ Delivery, Faster. Business Expectations, Optimistic.
China’s manufacturing PMI rose to 51.2 in October, the highest level since August 2014. The latest set of PMI data indicates that the manufacturing sector in China has expanded at a relatively fast pace recently, driven mainly by the strengthening domestic demand.
10 of the 12 sub-indices were higher than their respective levels in the previous month. The new orders index rose strongly by 1.9 pts from the previous month to 52.8 in October; the new export orders index fell to 49.2 in October from 50.1 in September.1 The figures show that the domestic demand has improved, while the export demand has weakened. Against this backdrop, the output index climbed to a 25-month high of 53.3 in October, indicating that output growth has further accelerated lately. It is worth noting that the input prices index went up to 62.6 in October, well above the critical 50-mark, indicating that the prices of production inputs have risen at a fast pace. Cost pressure on manufacturers has increased.
By size of enterprises, the PMI of ‘large enterprises’ dropped slightly to 52.5 in October from 52.6 in September. The PMI of ‘medium enterprises’ rose to 49.9 in October from 48.2 in September, while the PMI of ‘small enterprises’ went up to 48.3 in October from 46.1 in September.
The output index was 53.3 in October, up from 52.8 in September. The output index of ‘large enterprises’ went down to 55.4 in October from 56.1 in September; the output index of ‘medium enterprises’ was 51.4 in October, up from 50.2 in September; the output index of ‘small enterprises’ rebounded to 48.1 in October from 44.2 in September.
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