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The Manufacturing PMI Ran Steadily in April

Stable Domestic Demand, Production and Employment

Submit Time:06-06-2018 | Zoom In | Zoom Out

Author: | Source:People’s Daily (Page 10, May 02, 2018)

Abstract:

China Federation of Logistics and Purchasing and Service Industry Survey Center of National Bureau of Statistics published on April 30 that the Purchasing Managers’ Indexes (PMI) of the manufacturing industry of China in May was 51.4%, slightly down by 0.1 percentage points from that of the previous month. Of the main sub-item indexes, most showed little fluctuation, and this showed that the economy was stable as a whole, and the trend of periodical improvement can be further seen.  

The PMI index indicated the basic characteristics of “three-stability” in economic operation. The first is stable domestic demand. Despite the downward fluctuation of the new export order index, this index remained at around 53%, 0.6 percentage points higher than that of the same period last year, indicating stable domestic demand on a solid foundation. The second is stable production. The production index was 53.1%, at the same level of last month. According to the survey, 46.8% of enterprises reported stable production. The third is stable employment. The employee index was 49%, with very little fluctuation. It maintained at a high level in the new normal economic situation.  

In April, the PMI of large enterprises was 52%, remaining at a high level with a slight fall. The PMI of small and medium-sized enterprises kept on rising in two consecutive months. The PMI of medium-sized enterprises reached 50.7%, the highest since last October. The PMI index of small businesses rose more significantly, staying above 50% for two consecutive months, the highest since the second half of last year. The PMI index of small and medium-sized enterprises continued to rise, indicating that the positive support policies of the state, such as tax and fee reduction, have been effective, and the production and operation situation of small and medium-sized enterprises is improving.

China’s non-manufacturing business activity index of April was 54.8%, staying above 54% for 8 consecutive months, higher than that of last month and the same period last year, a rise by respectively 0.2 and 0.8 percentage points. Of the sub-indexes, the new order index, the sales price index and the expected business activity index all rose, and the employee index was stable at 49%. Changes of comprehensive index showed that the growth drivers for sustained and rapid development of non-manufacturing industry have been further increased.  


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