China's manufacturing PMI in July was 51.4%

[China Instrument Network Instrument Market] In July 2017, the China Manufacturing Purchasing Managers Index (PMI) was 51.4%, a slight decrease of 0.3% from the previous month, which was basically the same as the first half of the year, and the overall trend of the manufacturing industry was stable.

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In terms of scale of the company, the PMI of large companies is 52.9%, up 0.2% from last month and rising for two consecutive months; the PMI of medium-sized enterprises is 49.6%, down 0.9% from the previous month and falling below the critical point; Small Business PMI This was 48.9%, down 1.2% from the previous month and below the critical point.

From the classification index, among the five sub-indices that constitute the manufacturing PMI, the production index, new order index, and supplier delivery time index are above the critical point, and the raw material inventory index and the employee index are below the critical point.

The production index is 53.5%, which is 0.9 percentage point lower than last month. It is still in the expansion range, indicating that the growth rate of manufacturing production has slowed down; the new orders index is 52.8%, which is 0.3 percentage points lower than last month and continues to be above the critical point. It shows that the expansion of the manufacturing market demand has slightly slowed down; the raw materials inventory index is 48.5%, down 0.1 percentage point from the previous month, which is lower than the critical point, indicating that the inventory of major raw materials in the manufacturing industry continues to decline; the employee index is 49.2%. The 0.2 percentage point increase in the previous month was below the critical point, indicating that the reduction in the number of workers employed by manufacturing companies has narrowed; the supplier delivery time index was 50.1%, up 0.2 percentage points from the previous month, and rose above the critical point, indicating that manufacturing Industry raw material suppliers have accelerated delivery times.

According to Zhao Qinghe, a senior statistician at the National Bureau of Statistics Service Survey Center, the main features of the manufacturing PMI this month are as follows: First, supply and demand continued to expand, but the growth rate slowed. Due to the recent large-scale continuous hot-clear, high-temperature weather in some parts of the country, and storms and floods in some regions, some companies routinely overhauled equipment and manufacturing activities have slowed down. The production index and new orders index were 53.5% and 52.8%, respectively, down 0.9 and 0.3 percentage points from the previous month, but the difference between them was significantly reduced, and the supply and demand relationship improved. The second is that imports and exports have maintained growth, but the increase has narrowed. The new export orders index and import index were 50.9% and 51.1%, respectively, down 1.1 and 0.1 percentage points from the previous month. Both were consecutively in the expansion range, with the import index being the second highest this year. Third, companies continue to increase their purchasing power, and the price index has both risen. The purchasing volume index for the month was 52.7%, which was 0.2 percentage points higher than the previous month and was the second highest this year. The major raw material purchase price index and the ex-factory price index were 57.9% and 52.7%, respectively 7.5 and 3.6 percentage points higher than the previous month. The ex-factory price index returned above the critical point. Among them, the purchase price index and the ex-factory price index for the major raw materials of the ferrous metal smelting and rolling processing industry both climbed to a high level, which are both highs this year. Fourth, the market is expected to continue to improve. The expected index for production and business activities was 59.1%, which was an increase of 0.4 percentage points from the previous month and rose for three consecutive months. It was the second highest point of the year and was 3.3 percentage points higher than that of the same period of last year, indicating that the confidence of enterprises in the future is further enhanced.

The survey results show that due to factors such as overcapacity and structural adjustment, the PMI of the petroleum processing and coking industry and non-metallic mineral products industry was within the contraction range for three consecutive months, which was lower than the overall level of the manufacturing industry. In addition, nearly 40% of companies report that labor costs have risen, and the pressure on companies to use labor costs remains high.

In terms of the size of the company, the PMI of large-sized companies was 52.9%, up 0.2% from the previous month, and it rebounded for two consecutive months. The PMI for small and medium-sized enterprises was 49.6% and 48.9%, which fell by 0.9% and 1.2% respectively from the previous month.

(Original title: China Manufacturing Purchasing Managers Index was 51.4% in July 2017)