China's Non-manufacturing PMI was 54.7 Percent in November

National Bureau of Statistics of China 2016-12-01 16:34 Print| Large| Medium| Small

Department of Service Statistics of NBS

China Federation of Logistics and Purchasing (CFLP)

In November 2016, China's non-manufacturing purchasing manager index was 54.7 percent, an increase of 0.7 percentage points over the previous month, rising for three consecutive months, and hit the highest since July 2014. Non-manufacturing continued a steady and rapid growth momentum, and the growth rate went up further.

In view of different industries, non-manufacturing purchasing manager index of service industry was 53.7 percent, an increase of 1.1 percentage points over the previous month, hit this year’s high, showing that the service industry developed steadily for the better. Of which, the indices of retail trade, transport via railway, water transport, post, loading, unloading, portage and storage, Internet, software and information technology services, monetary financial services, capital market services, insurance, were positioned in the high level of the range, and the total enterprise business increased rapidly. The indices of air transport, restaurants, real estate, were below the threshold, and the total enterprise business decreased. Affected by the gradual cooling climate, non-manufacturing purchasing manager index of construction industry achieved 60.4 percent, a decrease of 1.4 percentage points over the previous month, was still positioned in the high level of the range.

New orders index was 51.8 percent, up by 0.9 percentage points over the previous month, staying above the threshold for three consecutive months, and hit the highest for the past two years, indicating that the market demand of the non-manufacturing industry increased steadily. In view of different industries, the new orders index of service industry was 51.2 percent, increased 0.8 percentage points over the previous month, continued to be higher than the threshold. The new orders index of construction industry was 55.1 percent, increased 0.9 percentage points over the previous month, and higher than the threshold.

Input price index was 53.5 percent, down by 0.2 percentage points over the previous month, and was still the second highest point since this year, indicating that the input price during the process of production and operation of non-manufacturing enterprises continued to increase, while the amount of increase narrowed slightly. In view of different industries, the intermediate input price index of service industry was 52.5 percent, a decrease of 0.7 percentage points over the previous month. The input price index of construction industry was 58.8 percent, an increase of 2.3 percentage points over the previous month.

The sales price index was 51.4 percent, down by 0.1 percentage point over last month, staying above the threshold for four consecutive months, indicating that the overall level of non-manufacturing sales price continued to increase. In view of different industries, the sales price index of service industry was 51.1 percent, a decrease of 0.2 percentage points over the previous month. The sales price index of construction industry was 53.1 percent, an increase of 0.7 percentage points over the previous month.

Employment index was 50.6 percent, increased 0.6 percentage points over the previous month, and rose to the expansion range for the first time this year, indicating the labor employment of non-manufacturing enterprises increased. In view of different industries, the employment index of service industry was 49.6 percent, an increase of 0.3 percentage points over the previous month. The employment index of construction industry was 55.9 percent, an increase of 2.0 percentage points over the previous month, and hit a new high in this year.

Business activities expectation index was 60.7 percent, a slight increase of 0.1 percentage point over last month, 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-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
March	53.8	50.8	51.4	49.5	48.2	59.0
April	53.5	48.7	52.1	49.1	49.2	59.1
May	53.1	49.2	51.6	49.8	49.1	57.8
June	53.7	50.8	51.6	50.6	48.7	58.6
July	53.9	49.9	51.4	49.5	48.5	59.5
August	53.5	49.8	52.6	50.4	49.1	59.4
September	53.7	51.4	51.7	50.1	49.7	61.1
October	54.0	50.9	53.7	51.5	50.0	60.6
November	54.7	51.8	53.5	51.4	50.6	60.7

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-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
March	47.8	43.4	45.9	51.4
April	45.7	43.6	45.4	51.8
May	49.5	43.6	45.6	51.4
June	48.6	43.1	46.0	52.3
July	47.5	42.8	46.3	51.9
August	48.8	43.0	45.5	51.7
September	48.3	43.6	45.9	52.0
October	51.4	44.0	45.3	51.4
November	50.9	44.2	45.8	51.5

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.