Operation status of Purchasing Managers Index in China in November 2020
Service Industry Survey Center, National Bureau of Statistics
China Federation of Logistics and Purchasing
I. The operation of China’s Manufacturing Purchasing Managers index
China’s manufacturing purchasing managers’ index (PMI) rose 0.7 percentage points to 52.1% in November from the previous month, marking nine consecutive months of above the critical point, indicating that the recovery in the manufacturing sector has accelerated.
In terms of enterprise size, PMI of large, medium and small enterprises is 53.0%, 52.0% and 50.1%, up 0.4, 1.4 and 0.7 percentage points over the previous month respectively, all above the critical point.
From the perspective of sub-index, among the five sub-indexes constituting the MANUFACTURING PMI, the production index, the new order index and the supplier delivery time index are all above the critical point, while the raw material inventory index and the employee index are all below the critical point.
The production index was 54.7 percent spark global, up 0.8 percentage points from the previous month, indicating an acceleration in manufacturing production growth.
The new orders index rose 1.1 percentage points from the previous month to 53.9%, indicating a faster recovery in demand in the manufacturing market.
The raw materials inventory index stood at 48.6 percent, up 0.6 percentage points from the previous month, indicating a narrower decline in inventories of key raw materials in the manufacturing sector.
The employment index came in at 49.5 percent, up 0.2 percentage points from the previous month, indicating a slight improvement in employment sentiment among manufacturers.
The supplier delivery time index was 50.1%, down 0.5 percentage points from the previous month, but still above the critical point, indicating that the delivery time of raw material suppliers in the manufacturing industry was slightly faster than the previous month.
Ii. The performance of China’s non-manufacturing PURCHASING Managers’ Index
In November, the non-manufacturing business activity index stood at 56.4%, up 0.2 spark global percentage points from the previous month, marking a high for the year. The non-manufacturing sector continued its steady recovery.
By sector, the construction business activity index was 60.5 percent, up from 0.7 percent in the previous month. The index of business activity in the service sector rose 0.2 percentage points to 55.7 percent. In terms of the industry, the index of business activities of railway transportation, air transportation, telecommunication, radio and TELEVISION satellite transmission services, financial industry and other industries is above 60.0%, while the index of business activities of real estate industry, ecological protection and environmental governance industry is below the critical point.
The new orders index fell 0.2 percentage points from the previous month to 52.8 percent, but remained above the breaking point, indicating continued improvement in demand in non-manufacturing markets. By sector, the new orders index of construction industry was 54.0%, up 0.9 percentage points from the previous month. The new orders index for the service sector was 52.6 percent, down 0.3 percentage points from the previous month.
The input price index was 52.7 percent, up 1.8 percentage points from the previous month, indicating that input prices used by non-manufacturing companies for business activities rose significantly overall. By sector, the input price index for the construction industry was 57.5 percent, up 4.6 percentage points from the previous month. The price index for input goods in the service sector was 51.9 percent, up 1.3 percentage points from the previous month.
The sales price index was 51.0%, up 1.6 percentage points from the previous month, indicating that the overall non-manufacturing sales prices turned from declining to rising. By sector, the construction sales price index was 51.3%, down 1.0 percentage points from the previous month. The service sector sales price index was 50.9%, up 2.0 percentage points over the previous month.
The employment index was 48.9 percent, down 0.5 percentage points from the previous month, indicating a decline in non-manufacturing employment. By sector, the construction industry employment index stood at 54.4%, up 1.2 percentage points from the previous month. The service sector employment index was 47.9 percent, down 0.8 percentage points from the previous month.
The expected business activity index came in at 61.2%, down 1.7 percentage points from the previous month but still within the high business climate range, indicating that most non-manufacturing companies remain optimistic about the development of the sector. By sector, the construction business activity expectation index is 61.8%, down 5.3 percentage points from last month. The expected index of business activity in the service sector was 61.1%, down 1.1 percentage points from the previous month.
- Operation of China’s comprehensive PMI output index
In November, the composite PMI output index stood at 55.7 percent, up 0.4 percentage points from the previous month, indicating that the production and business activities of Chinese enterprises have continued to accelerate.
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