China's Non-manufacturing PMI was 54.5 Percent in December

National Bureau of Statistics of China 2017-01-04 13:21 Print| Large| Medium| Small

Department of Service Statistics of NBS

China Federation of Logistics and Purchasing (CFLP)

In December 2016, China's non-manufacturing purchasing manager index was 54.5 percent, a decrease of 0.2 percentage points over the previous month, and hit this year’s second highest. Non-manufacturing industry continued a rapid growth momentum.

In view of different industries, non-manufacturing purchasing manager index of service industry was 53.2 percent, a decrease of 0.5 percentage points over the previous month, but still higher than the annual average. Of which, the indices of transport via railway, air transport, post, telecommunications, broadcasting, television and satellite transmission services, Internet, software and information technology services, monetary financial services, insurance, renting and leasing activities and business services, were positioned in the high level of the range which above 55.0 percent, and the total enterprise business increased rapidly. The indices of transport via road, water transport, restaurants, capital market services, real estate, resident services and repair, were below the threshold, and the total enterprise business decreased. Non-manufacturing purchasing manager index of construction industry achieved 61.9 percent, an increase of 1.5 percentage points over the previous month, and the construction industry continued to keep rapid expansion.

New orders index was 52.1 percent, up by 0.3 percentage points over the previous month, rising for two consecutive months, indicating that the expansion has picked up pace. In view of different industries, the new orders index of service industry was 50.9 percent, decreased 0.3 percentage points over the previous month, continued to be higher than the threshold. The new orders index of construction industry was 59.2 percent, a sharp rise of 4.1 percentage points over the previous month, positioned in the high level of the range.

Input price index was 56.2 percent, up by 2.7 percentage points over the previous month, and reached this year’s highest, indicating that the input price during the process of production and operation of non-manufacturing enterprises continued to increase, and the amount of increase enlarged. In view of different industries, the intermediate input price index of service industry was 54.9 percent, an increase of 2.4 percentage points over the previous month. The input price index of construction industry was 63.5 percent, an increase of 4.7 percentage points over the previous month.

The sales price index was 51.9 percent, up by 0.5 percentage points over last month, still above the threshold, indicating that the overall level of non-manufacturing sales price continued to increase, and the amount of increase extended. In view of different industries, the sales price index of service industry was 51.4 percent, an increase of 0.3 percentage points over the previous month. The sales price index of construction industry was 54.6 percent, an increase of 1.5 percentage points over the previous month.

Employment index was 50.0 percent, decreased 0.6 percentage points over the previous month, and was at the threshold, indicating the labor employment of non-manufacturing enterprises was unchanged compared with last month. In view of different industries, the employment index of service industry was 49.1 percent, a decrease of 0.5 percentage points over the previous month. The employment index of construction industry was 54.9 percent, a decrease of 1.0 percentage point over the previous month.

Business activities expectation index was 59.5 percent, a decrease of 1.2 percentage points over last month, still 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-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
December	54.5	52.1	56.2	51.9	50.0	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-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
December	48.9	44.0	47.2	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.