China's manufacturing PMI was 51.0% in December

Abstract China's Manufacturing Purchasing Managers Index (PMI) for December 2013 released by China Federation of Logistics and Purchasing and National Bureau of Statistics Service Industry Center was 51.0%, down 0.4 percentage points from the previous month. This report shows that from the perspective of 12 sub-indices...
China's Federation of Logistics and Purchasing and the National Bureau of Statistics Service Industry Research Center released the December 2013 China Manufacturing Purchasing Managers Index (PMI) of 51.0%, down 0.4 percentage points from the previous month.

According to the report, from the 12 sub-indices, compared with the previous month, except for the purchase price index, the index has declined slightly; the other indexes have declined.

The production index was 53.9%, down 0.6 percentage points from the previous month; the new order index was 52.0%, down 0.3 percentage points from the previous month; the new export order index was 49.8%, down 0.8 percentage points from the previous month; the backlog index was 45.1. %, down 0.2 percentage points from the previous month; the finished goods inventory index was 46.2%, down 1.7 percentage points from the previous month; the purchase volume index was 52.7%, down 0.9 percentage points from the previous month; the import index was 49.0%, compared with the previous month. The price index fell by 1.5 percentage points; the purchase price index was 52.6%, up 0.1 percentage points from the previous month; the raw material inventory index was 47.6%, down 0.2 percentage points from the previous month; the employee index was 48.7%, down 0.9 percentage points from the previous month. The supplier's delivery time index was 50.5%, down 0.1 percentage point from the previous month; the production and operation activity expectation index was 49.4%, down 5.5 percentage points from the previous month.

Special analyst Zhang Liqun believes that the PMI index fell in December 2013, indicating that the future economic growth will stabilize and decline. New orders, backlog orders, and export order indices all declined in different degrees, reflecting a slight drop in market demand; the decline in finished goods inventory index and purchasing volume index indicates that companies are still cautious about the future market. Based on these circumstances, it is expected that the industrial growth rate will decline in the future, and the export growth rate is also likely to decline. There is still some downward pressure on economic growth.

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