China's Non-manufacturing PMI was 53.4 Percent in August
Department of Service Statistics of NBS
China Federation of Logistics and Purchasing (CFLP)
In August 2017, China's non-manufacturing purchasing manager index was 53.4 percent, a decrease of 1.1 percentage points from the previous month, and continued to be higher than the threshold, the non-manufacturing industry generally continued an expanding momentum.
In view of different industries, non-manufacturing purchasing manager index of service industry was 52.6 percent, a decrease of 0.5 percentage points from the previous month. The service industry kept growing, while the growth rate declined slightly. Of which, the indices of air transport, post, telecommunications, broadcasting, television and satellite transmission services, Internet, software and information technology services, continued to be positioned in the high level of the range which above 60.0 percent, and the total enterprise business increased rapidly. The indices of wholesale, capital market services, real estate, resident services and repair, were positioned in the contraction range, and the total business decreased. Non-manufacturing purchasing manager index of construction industry achieved 58.0 percent, a decrease of 4.5 percentage points from the previous month, while was still higher than the threshold, the production growth of enterprises slowed down.
New orders index was 50.9 percent, down by 0.2 percentage points from the previous month, and continued to stay above the threshold, indicating that the growth rate of the non-manufacturing market demand dropped slightly. In view of different industries, the new orders index of service industry was 50.3 percent, increased 0.1 percentage point from the previous month, and staying above the threshold for four consecutive months. The new orders index of construction industry was 54.5 percent, decreased 1.5 percentage points from the previous month, while was still higher than the threshold.
Input price index was 54.4 percent, up by 1.3 percentage points from the previous month, and continued to stay above the threshold, indicating that the overall level of input price during the process of non-manufacturing enterprises’ operating activities continued to rise. In view of different industries, the intermediate input price indices of service industry was 53.2 percent, increased 1.3 percentage points from the previous month. The input price index of construction industry was 61.4 percent, an increase of 1.6 percentage points from the previous month.
The sales price index was 51.5 percent, up by 0.6 percentage points from last month, and staying above the threshold for two consecutive months, indicating that the overall level of non-manufacturing sales price continued to rise, and the amount of increase extended. In view of different industries, the sales price index of service industry was 51.0 percent, an increase of 0.4 percentage points from the previous month. The sales price index of construction industry was 54.4 percent, an increase of 1.9 percentage points from the previous month.
Employment index was 49.5 percent, unchanged from the previous month, and continued to be lower than the threshold, indicating that the labor employment of non-manufacturing enterprises declined. In view of different industries, the employment index of service industry was 48.6 percent, unchanged from the previous month. The employment index of construction industry was 54.3 percent, a slight increase of 0.1 percentage point from the previous month.
Business activities expectation index was 61.0 percent, a slight decrease of 0.1 percentage point from last month, and staying in the high level of the range which above 60.0 for four consecutive months. In view of different industries, the business activities expectation index of service industry was 60.1 percent, a decrease of 0.3 percentage points from the previous month. That of construction industry was 66.0 percent, an increase of 0.7 percentage points from the previous month.
| Main Indices of China's Non-manufacturing PMI (Seasonally adjusted) | ||||||
| Unit: % | ||||||
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| Non-manufacturing PMI | New Orders Index | Input Price Index | Sales Price Index | Employment Index | Business Activities Expectation Index |
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| 2016-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 |
| 2017-January | 54.6 | 51.3 | 55.1 | 51.0 | 49.8 | 58.9 |
| February | 54.2 | 51.2 | 53.7 | 51.4 | 49.7 | 62.4 |
| March | 55.1 | 51.9 | 52.3 | 49.7 | 49.1 | 61.3 |
| April | 54.0 | 50.5 | 51.7 | 50.2 | 49.5 | 59.7 |
| May | 54.5 | 50.9 | 51.1 | 48.8 | 49.0 | 60.2 |
| June | 54.9 | 51.4 | 51.2 | 49.3 | 49.6 | 61.1 |
| July | 54.5 | 51.1 | 53.1 | 50.9 | 49.5 | 61.1 |
| August | 53.4 | 50.9 | 54.4 | 51.5 | 49.5 | 61.0 |
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| 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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| 2016-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 |
| 2017-January | 46.4 | 44.6 | 46.2 | 51.4 |
| February | 50.1 | 43.5 | 45.8 | 52.1 |
| March | 48.8 | 44.7 | 45.8 | 51.4 |
| April | 47.1 | 44.0 | 46.2 | 52.0 |
| May | 48.5 | 43.7 | 46.1 | 51.8 |
| June | 49.8 | 44.6 | 45.9 | 51.8 |
| July | 52.1 | 43.9 | 45.9 | 51.7 |
| August | 49.0 | 44.0 | 45.5 | 51.1 |
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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 31 non-manufacturing industry divisions in the “Industrial Classification for National Economic Activities" (GB/T4754-2011), and was conducted in 4000 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 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.