Department of Service Statistics of NBS
China Federation of Logistics and Purchasing (CFLP)

In March, non-manufacturing purchasing manager index was 58.0 percent, 0.7 percentage points increase over the previous month, staying above the threshold. Other sub-indices of non-manufacturing PMI also gained comprehensively increase. The survey data showed that the corporate procurement activities was more active, market demand has picked up, the non-manufacturing economy has maintained a good momentum of growth, and future development is expected to improve.

The new orders index obtained steadily improvement. The new orders index was 53.5 percent, increased 0.8 percentage points over the previous month, which indicated that the new orders of non-manufacturing continued to maintain growth, and growth has accelerated. In view of different industries, the new orders index of construction was 56.3 percent. Nearly 30 percent of enterprises believed that the number of new engineering contracts increased over the previous month, which indicated that as the climate gets warmer, the construction enterprises at full capacity, and market demands gained further improvements. The new orders index of service industry was 52.8 percent, and up 1.2 percentage points, the market demand of enterprise climbed up. Of which, wholesale and retail trade industry, information transmission, software and IT services industry obtained fast growth; real estate industry continued to be locate below the threshold, the demands of real estate market were still in a cool place.

Intermediate input price index continued increase. Intermediate input price index was 60.2 percent, up 1.2 percentage points over the previous month, which indicated that non-manufacturing enterprises continued to show a rising trend, and has an increasing growth rate. Intermediate input price index of all industries of non-manufacturing obtained increase. Of which, the operating costs of transportation industry and warehouse industry significantly went up by the influences of further increases in fuel prices.

The subscription price index continued slightly increasing. Subscription price index was 52.0 percent, increased 0.8 percentage points over the previous month, staying above the threshold for three consecutive months, which indicated that intermediate input costs of enterprises continued to increase, sales or subscription prices of the non-manufacturing also obtained promote, but the growth rate was significantly lower than the amplification of the intermediate input price. In view of different industries, the subscription price of construction industry, whole sale and retail sale industry, lodging and catering industry, social services industry staying above the threshold, while that of railway and air transport industry, road transport industry, telecommunications, radio, television and satellite transmission services, and real estate industry positioned below the threshold, which indicated that subscription price of enterprises dropped month-on-month.

Business activities expectation index continued high rising. This index was 66.6 percent, increased 2.8 percentage points over the previous month, and was the highest point since August 2011, which indicated that the non-manufacturing enterprises maintained an optimistic momentum about the future development, and have more confidence. In views of different industries, business activities expectation index of wholesale and retail trade industry, information transmission, software and information technical services industry positioned in the high place which stood above the 72 percent, that of real estate industry was 54.8 percent, which above the threshold for two consecutive months, which indicated that the non-manufacturing enterprises has been restored the confidence on future development.

Annotations:

1. 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 will be seasonally adjusted the sub-indices of the non-manufacturing PMI system since March 2012. This month is release the quarterly data on seasonally adjusted.

2. 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, intermediate input price index, subscription 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.

3. Statistical Coverage

The survey Involves 27 manufacturing industry categories in the “Industrial Classification for National Economic Activities" (GB/T4754-2002).

4. Survey Methods

Manufacturing purchasing managers’ survey was conducted in 1200 sampling enterprises, selected by stratified and PPS sampling method from the non-manufacturing enterprises in the whole country, and was carried out by interviewing the enterprises’ purchasing managers monthly using questionnaire method.

5. 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.