China’s Manufacturing PMI Rises to 49.3% in July, Signaling Industry Recovery

Augus 11, 2023

Manufacturing Purchasing Managers Index

In July, the Purchasing Manager Index (PMI) of China’s manufacturing industry was 49.3 percent, increase 0.3 percentage point from the previous month, and the prosperity level of the manufacturing industry continued to improve.

In terms of enterprise size, the PMI for large enterprises was 50.3 percent, maintained the same with the previous month; the PMI for medium-sized enterprises was 49.0 percent, increase 0.1 percentage point from the previous month; the PMI for small enterprises was 47.4 percent, increase 1.0 percentage point from the previous month.

From the sub-indexes, among the five sub-indexes that constitute the manufacturing PMI, the production index and supplier delivery time index was higher than the threshold, and the new order index, raw material inventory index and employment index were all lower than the threshold.

The production index was 50.2 percent, decrease 0.1 percentage point from the previous month, and still higher than the threshold, indicating that manufacturing production activities keep expanding.

The new order index was 49.5 percent, increase 0.9 percentage point from the previous month, indicating that the prosperity index of the manufacturing market demand continued to improve.

The raw material inventory index was 48.2 percent, increase 0.8 percentage point from the previous month, indicating that the inventory of major raw materials in the manufacturing industry was in narrowed decline.

The employment index was 48.1 percent, decrease 0.1 percentage point from the previous month, indicating little change in the prosperity index of employment of manufacturing enterprises.

The supplier delivery time index was 50.5 percent, increase 0.1 percentage point from the previous month, indicating that the delivery time of raw material suppliers in the manufacturing industry continued to decrease.

The new order index was 48.1 percent, decrease 1.4 percentage points from the previous month, indicating that the prosperity index of the non-manufacturing market demand has declined. By industry, the new order index for the construction industry was 46.3 percent, decrease 2.4 percentage points from the previous month; that for the service industry was 48.4 percent, decrease 1.2 percentage points from the previous month.

The input price index was 50.8 percent, increase 1.8 percentage points from the previous month, indicating that the overall level of input prices used by non-manufacturing enterprises for business activities has increased. By industry, the input price index for construction industry was 50.7 percent, decrease 1.1 percentage points from the previous month; the input price index for the service industry was 50.8 percent, increase 2.2 percentage points from the previous month.

The sales price index was 49.7 percent, increase 1.9 percentage points from the previous month, indicating the overall decrease in non-manufacturing sales prices narrowed. By industry, the sales price index for the construction industry was 52.0 percent, increase 0.4 percentage point from the previous month; the sales price index for the service industry was 49.3 percent, increase 2.1 percentage points from the previous month.

The employment index was 46.6 percent, decrease 0.2 percentage point from the previous month, indicating that the prosperity index of employment of non-manufacturing enterprises has slightly declined. In terms of industries, the employment index for the construction industry was 45.2 percent, decrease 2.0 percentage points from the previous month; that for the service industry was 46.8 percent, increase 0.1 percentage point from the previous month.

The business activity expectation index was 59.0 percent, decrease 1.3 percentage points from the previous month, and continued to be in the higher expansion range, indicating that non-manufacturing enterprises maintained strong confidence about the recent market recovery and development. By industry, the business activity expectation index for the construction industry was 60.5 percent, increase 0.2 percentage point from the previous month; that for the service industry was 58.7 percent, decrease 1.6 percentage points from the previous month.

Source: National Bureau of Statistics of China
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