The manufacturing PMI for China was 48.0% in November, down 1.2 percentage points from the month before and under the threshold

December 8, 2022

Manufacturing Purchasing Managers Index in China

In November, the Purchasing Manager Index (PMI) of China’s manufacturing industry was 48.0 percent, decrease 1.2 percentage points from the previous month, below the threshold, and the prosperity level of the production and operation of manufacturing industry has decreased.

In terms of enterprise size, the PMI of large, medium-sized and small enterprises was 49.1, 48.1 and 45.6 percent respectively, decrease 1.0, 0.8 and 2.6 percentage points from the previous month, all below the threshold.

From the sub-indexes, the five sub-indexes that constitute the manufacturing PMI were all lower than the threshold.

The production index was 47.8 percent, decrease 1.8 percentage points from the previous month, indicating that manufacturing production activities continued to slow down.

The new order index was 46.4 percent, decrease 1.7 percentage points from the previous month, indicating that the market demand of the manufacturing industry continued to fall.

The raw material inventory index was 46.7 percent, decrease 1.0 percentage point from the previous month, indicating that the inventory of major raw materials in the manufacturing industry has declined.

The employment index was 47.4 percent, decrease 0.9 percentage point from the previous month, indicating a decline in the employment outlook of manufacturing enterprises.

The supplier delivery time index was 46.7 percent, decrease 0.4 percentage points from the previous month, indicating that the delivery time of raw material suppliers in the manufacturing industry has slowed down.

Non-manufacturing Purchasing Managers Index

In November, the non-manufacturing business activity index was 46.7 percent, decrease 2.0 percentage point from the previous month, below the threshold, and the prosperity level of non-manufacturing has fallen.

By industry, the business activity index of the construction industry was 55.4 percent, decrease 2.8 percentage points from the previous month. The business activity index of the service industry was 45.1 percent, decrease 1.9 percentage points from the previous month. From the perspective of the industry, the business activity index of postal service, monetary and financial services, capital market services and insurance was in the higher boom range of more than 55.0 percent; The business activity index of road transport, air transportation, accommodation, catering and culture, sports and entertainment was lower than 38.0 percent.

The new order index was 42.3 percent, decrease 0.5 percentage points from the previous month, falling below the threshold, indicating that the market demand of non-manufacturing has fallen. By industry, the new order index of the construction industry was 46.9 percent, decrease 2.0 percentage point from the previous month; the index of new orders in the service industry was 41.4 percent, decrease 0.3 percentage points from the previous month.

The input price index was 49.9 percent, decrease 1.1 percentage points from the previous month and below the threshold, indicating that the overall level of input prices used by non-manufacturing enterprises for business activities has slightly decreased. By industry, the construction industry input price index was 48.7 percent, decrease 3.6 percentage points from the previous month; the price index of service industry inputs was 50.1 percent, decrease 0.7 percentage points from the previous month.

The sales price index was 48.7 percent, increase 0.6 percentage points from the previous month, and lower than the threshold, indicating that the overall decline in non-manufacturing sales prices has narrowed. By industry, the sales price index of the construction industry was 50.9 percent, increase 1.1 percentage point from the previous month; the sales price index of the service industry was 48.3 percent, increase 0.5 percentage points from the previous month.

The employment index was 45.5 percent, decrease 0.6 percentage point from the previous month, indicating that the employment outlook of non-manufacturing enterprises continued to fall. In terms of industries, the construction industry employee index was 47.1 percent, decrease 0.7 percentage point from the previous month; the index of service industry employees was 45.2 percent, decrease 0.6 percentage points from the previous month.

The expected index of business activities was 54.1 percent, decrease 3.8 percentage points from the previous month, and continued to be higher than the threshold, indicating that non-manufacturing enterprises were cautiously optimistic about the recent market recovery and development. By industry, the expected index of business activities in the construction industry was 59.6 percent, decrease 4.6 percentage points from the previous month; the expected index of business activities in the service industry was 53.1 percent, decrease 3.6 percentage points from the previous month.

Composite PMI Output Index

In November, the comprehensive PMI output index was 47.1 percent, decrease 1.9 percentage points from the previous month, below the threshold, indicating that the overall production and operation of Chinese enterprises continued to slow down.

Source: National Bureau of Statistics of China
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