China's Non-manufacturing PMI was 52.7 Percent in February

National Bureau of Statistics of China 2016-03-02 16:12 Print| Large| Medium| Small

Department of Service Statistics of NBS

China Federation of Logistics and Purchasing (CFLP)

In February 2016, China's non-manufacturing purchasing manager index was 52.7 percent, a decrease of 0.8 percentage points over the previous month, while continued to stay in the expansion range. Of which, the purchasing manager index of service industry was 52.2 percent, a decrease of 0.5 percentage points.

In view of different industries, as service industry was influenced by the Spring Festival holiday and other factors, the production of industries closely related to festival consumption such as transport, restaurants, telecommunications, broadcasting, television and satellite transmission services, monetary financial services, post, renting and leasing activities and business services, retail trade was active, and the total enterprise business increased obviously. while the indices of wholesale, capital market services, insurance, loading, unloading, portage and storage, accommodation, real estate, Resident services and repair were obviously lower than the threshold, and the total enterprise business declined. Non-manufacturing purchasing manager index of construction industry achieved 55.2 percent, down by 2.6 percentage points over the previous month, and the growth rate of the total enterprise business continued to drop.

New orders index was 48.7 percent, down by 0.9 percentage points over the previous month, indicating that the market demand of non-manufacturing industry decreased. In view of different industries, the new orders index of service industry was 48.8 percent, decreased 0.2 percentage points over the previous month. The new orders index of construction industry was 48.1 percent, decreased 5.0 percentage points over the previous month.

Input price index was 50.5 percent, up by 0.6 percentage points over last month, and rose over the threshold, indicating that the input price during the process of production and operation of non-manufacturing enterprises increased. In view of different industries, the intermediate input price index of service industry was 50.4 percent, an increase of 0.6 percentage points over the previous month. The input price index of construction industry was 50.8 percent, a slight increase of 0.1 percentage point over the previous month.

The sales price index was 48.3 percent, 0.6 percentage points higher over last month, and was still below the threshold, indicating that the overall level of non-manufacturing sales price continued to drop, while the pace of decline narrowed. In view of different industries, the sales price index of service industry was 48.1 percent, an increase of 0.7 percentage points over the previous month. The sales price index of construction industry was 49.4 percent, a slight decrease of 0.1 percentage point over the previous month.

Employment index was 48.9 percent, increased 0.1 percentage point over the previous month, still stayed below the threshold, indicating the labor employment of non-manufacturing enterprises continued to decrease. In view of different industries, the employment index of service industry was 48.6 percent, an increase of 0.7 percentage points over the previous month. The employment index of construction industry was 50.4 percent, a decrease of 3.3 percentage points over the previous month.

Business activities expectation index was 59.5 percent, went up by 1.1 percentage points over last month, and had risen for two consecutive months, continued to be positioned in the high level of the range.

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

2015-February	53.9	51.2	52.5	51.2	49.8	58.7
March	53.7	50.3	50.0	48.4	49.0	58.8
April	53.4	49.1	50.8	48.9	48.9	60.0
May	53.2	49.5	52.8	50.4	47.6	60.1
June	53.8	51.3	50.6	48.7	49.7	59.7
July	53.9	50.1	48.9	47.4	49.2	60.0
August	53.4	49.6	49.6	47.8	49.5	59.7
September	53.4	50.2	50.8	47.9	49.5	60.0
October	53.1	51.2	51.2	48.8	49.6	61.1
November	53.6	50.2	49.3	47.7	48.4	60.0
December	54.4	51.7	49.0	48.2	48.9	58.3
2016-January	53.5	49.6	49.9	47.7	48.8	58.4
February	52.7	48.7	50.5	48.3	48.9	59.5

Other Indices of China's Non-manufacturing PMI (Seasonally adjusted)
Unit: %
	Foreign New Orders Index	Unfilled Orders Index	Stock Index	Supplier Delivery Time Index

2015-February	52.1	46.5	47.8	51.5
March	51.5	43.1	47.2	52.0
April	49.7	44.2	46.4	52.5
May	47.9	43.7	46.8	52.0
June	50.1	44.7	47.0	51.9
July	46.2	43.4	46.7	51.9
August	46.6	43.7	45.8	51.7
September	51.1	43.7	46.1	51.7
October	49.5	43.5	45.9	51.6
November	49.4	44.4	46.6	51.2
December	50.9	44.5	45.5	52.1
2016-January	47.3	43.9	45.8	51.9
February	47.7	42.9	45.4	51.6

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 statistical coverage has been adjusted since June 2015. Non-manufacturing industry divisions in the “Industrial Classification for National Economic Activities" (GB/T4754-2011) were extended to 31 from original 27, and sampling enterprises were extended to 4000 from original 1200.

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 managers survey is a monthly survey, great fluctuations of data which affected by seasonal factors. The sub-indices of non-manufacturing PMI data released currently were all seasonally adjusted.