China's Non-manufacturing PMI Increased in February
Department of Service Statistics of NBS
China Federation of Logistics and Purchasing (CFLP)
In February 2015, non-manufacturing purchasing manager index was 53.9 percent, increased 0.2 percentage points over the previous month, and 3.9 percentage points higher than the threshold, indicating that China's non-manufacturing sector still remained stable development.
In view of different industries, non-manufacturing purchasing manager index of service industry was 53.2 percent, increased 0.3 percentage points over the previous month, indicating that the total business of service industry continued to maintain growth, the growth keep increasing. Of which, the indices of retail trade, food and beverage, air transport, road transport, were positioned in the high level of the range, and the business activities were active; accommodation, loading, unloading and portage, were below the threshold, and the total enterprise business declined. Non-manufacturing purchasing manager index of construction industry achieved 56.5 percent, down by 0.4 percentage points over the previous month, indicating that growth of total enterprise business of construction industry continued to maintain growth, while at a slightly narrowed pace.
New orders index was 51.2 percent, up by 1.0 percentage point over the previous month, higher than the threshold, indicating the non-manufacturing market demand continued to maintain growth. In view of different industries, the new orders index of service industry was 50.9 percent, increased 0.7 percentage points over the previous month, and rose over the threshold. The new orders index of construction industry was 52.3 percent, increased 1.9 percentage points over the previous month, the growth rate of market demand increased.
Input price index was 52.5 percent, up by 4.9 percentage points over last month, climbed over the threshold, indicating the input price during the process of production and operation of non-manufacturing enterprises increased over last month. In view of different industries, the intermediate input price index of service industry was 53.4 percent, an increase of 5.7 percentage points over the previous month, and higher than the threshold. The input price index of construction industry was 49.0 percent, an increase of 1.9 percentage points over the previous month, and continued to stay below the threshold.
The sales price index was 51.2 percent, 4.3 percentage points higher over last month, climbed over the threshold, showing that the overall level of non-manufacturing sales price trended up month-on-month. In view of different industries, the sales price index of service industry was 51.5 percent, an increase of 5.1 percentage points over the previous month, and stayed above the threshold again. The sales price index of construction industry was 49.8 percent, up by 1.1 percentage points over last month, and stayed below the threshold.
Employment index was 49.8 percent, decreased 0.5 percentage points over the previous month, dropped below the threshold, indicating the labor employment of non-manufacturing enterprises decreased. In view of different industries, the employment index of service industry was 49.2 percent, a decrease of 0.4 percentage points over the previous month, and was lower than the threshold. The employment index of construction industry was 51.9 percent, down by 1.2 percentage points over last month, and still rose over the threshold.
Business activities expectation index was 58.7 percent, went down by 0.9 percentage point over last month, continued to be positioned in the high level of the range, indicating that the non-manufacturing enterprises maintained optimistic about the market development expectation in next three months.
Main Indices of China's Non-manufacturing PMI (Seasonally adjusted) Unit: % Non-manufacturing PMI New Orders Index Input Price Index Sales Price Index Employment index Business Activities Expectation Index 2014-February 55.0 51.4 52.1 49.0 50.9 59.9 March 54.5 50.8 52.8 49.5 51.4 61.5 April 54.8 50.8 52.4 49.4 50.2 61.5 May 55.5 52.7 54.5 49.0 50.9 60.7 June 55.0 50.7 56.0 50.8 50.4 60.4 July 54.2 50.7 53.4 49.5 49.3 61.5 August 54.4 50.0 52.2 48.3 49.6 61.2 September 54.0 49.5 49.8 47.3 49.5 60.9 October 53.8 51.0 52.0 48.8 48.9 59.9 November 53.9 50.1 50.6 47.7 49.5 59.7 December 54.1 50.5 50.1 47.3 49.1 59.5 2015-January 53.7 50.2 47.6 46.9 50.3 59.6 February 53.9 51.2 52.5 51.2 49.8 58.7
| Other Indices of China's Non-manufacturing PMI (Seasonally adjusted) | ||||
| Unit: % | ||||
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| Foreign New Orders Index | Unfilled Orders Index | Stock Index | Supplier Delivery Time Index |
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| 2014-February | 50.1 | 45.1 | 48.7 | 52.0 |
| March | 48.3 | 45.3 | 46.5 | 51.5 |
| April | 51.7 | 44.9 | 48.3 | 52.1 |
| May | 51.0 | 44.3 | 47.2 | 52.1 |
| June | 52.7 | 45.6 | 47.1 | 52.4 |
| July | 50.2 | 45.3 | 45.9 | 52.7 |
| August | 49.8 | 46.1 | 48.3 | 51.6 |
| September | 51.6 | 46.5 | 46.9 | 52.2 |
| October | 50.8 | 44.0 | 46.1 | 51.7 |
| November | 49.0 | 45.6 | 47.3 | 52.5 |
| December | 49.3 | 44.1 | 46.3 | 51.5 |
| 2015-January | 52.9 | 46.7 | 46.7 | 51.4 |
| February | 53.3 | 45.4 | 46.5 | 51.6 |
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Annotations:
1. Explanatory Notes
China non-manufacturing purchasing manager index system constituted by 10 sub-indices, they are business activity index, new orders index, new export orders index in hand orders index, stock index, input price index, sales price index, employment index, supplier delivery time index, and business activities expectation index. Due to the lack of synthesis of non-manufacturing integrated PMI index, the international society often used business activity index to reflect the overall changes in non-manufacturing economic development, A PMI reading above 50 percent indicates expansion from the previous month, while below indicates contraction.
2. Statistical Coverage
The survey involves 27 non-manufacturing industry categories in the “Industrial Classification for National Economic Activities" (GB/T4754-2011), and was conducted in 1200 sampling enterprises of the non-manufacturing sector countrywide.
3. Survey Methods
Non-manufacturing purchasing managers’ survey was conducted in PPS ( Probability Proportional to Size) sampling method, using the non-manufacturing sectors as the selecting layers, distribution of sample size was according to their value-added accounted for the proportion of total non-manufacturing value-added, and samples within layers and the main business revenue of the enterprises were selected by the PPS.
The survey was organized and conducted by staff members of survey offices, monthly through Online Reporting System of NBS by sending survey questionnaires to the purchasing managers of the selected enterprises.
4. Calculation Methods
Non-manufacturing purchasing managers survey involves 10 questions on production, new orders (business required), export, existing orders, finished goods inventory, intermediate input price, subscription price, employees, suppliers delivery time, and business activities expectation. Diffusion index was calculated on each question, i.e. percentage of positive answers in number of enterprises plus half of the percentage in the same answers.
5. Seasonal Adjustment Note
The purchasing manager’s survey is a monthly survey, great fluctuations of data which affected by seasonal factors. At present, time series of China's non-manufacturing PMI have met the technical requirements of the seasonally adjustment, and the sub-indices of non-manufacturing PMI data on seasonally adjusted will be released since March 2012.
6. Explanation on Release Date Change
Since 2015, non-manufacturing PMI data will be released on the 1st of each month, which was originally on the 3rd of each month. At the same time, in order to make it easier for the public to understand the meaning of related indicators, the original “intermediate input price index” was turned to “input prices index”, and the original “subscription price index” was turned to “sales prices index”.