In May, China's Manufacturing Purchasing Managers Index (PMI) Was 50.4 Percent

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

In May, China's manufacturing purchasing managers index (PMI) was 50.4 percent, down by 2.9 percentage points month-on-month.

In view of the sizes of enterprises, the PMI of medium and large -sized enterprises was 50.8 and 51.1 percent, a month-on-month decrease of 2.6 and 2.7 percentage points, continuing to stay above the threshold. The PMI of small-sized enterprises was 45.2 percent, a month-on-month decrease of 3.9 percentage points, continuing to stay below the threshold for 2 consecutive months.

In May, all the five sub-indices composing PMI were dropped.

Production index was 52.9 percent, continuing to stay above the threshold, decreased 4.3 percentage points month-on-month, which was the lowest point since December 2011, indicating that manufacturing production growth has slowed down significantly. In view of different industries, the production of fabricated metal products manufacturing, foods, liquor, beverages and fine tea manufacturing, processing and coking of petroleum, electrical machinery and equipment manufacturing maintained stable growth. The production indices of automobile manufacturing, processing of timber, furniture manufacturing, railways, ship, aerospace and other transportation equipment manufacturing, paper and printing industry, cultural, educational, sporting goods manufacturing, and special equipment manufacturing positioned below the threshold, the production of enterprises decreased in various degrees.

In May, the new orders index was 49.8 percent, fell by 4.7 percentage points month-on-month, and fell below the threshold after staying above the threshold for 4 consecutive months, which indicating that new orders for manufacturing enterprises showed a sign of decline, In view of different industries, the new orders indices of fabricated metal products manufacturing, foods, liquor, beverages and fine tea manufacturing, electrical machinery and equipment manufacturing, processing and coking of petroleum, and textile wearing apparel manufacturing positioned above the threshold, the market demand increased. The market demands of timber, furniture manufacturing, special equipment manufacturing, automobile manufacturing, railways, ship, aerospace and other transportation equipment manufacturing, ferrous metal ores decreased. In addition, the survey results showed that foreign new orders index which reflects the situation of foreign trade of manufacturing was 50.4 percent, down 1.8 percentage points month-on-month; the import index was 48.1 percent, decreased 2.4 percentage points month-on-month, fell below the threshold.

Main raw materials inventory index was 45.1 percent, down by 3.4 percentage points month-on-month, below the threshold and was the lowest point since February 2009. In view of different industries, only the main raw materials inventory indices of foods, liquor, beverages and fine tea manufacturing, and fabricated metal products manufacturing positioned above the threshold, that of the other industries were below the threshold, the main raw materials inventory decreased in various degrees month-on-month.

Employed person index was 50.5 percent, decreased 0.5 percentage points month-on-month, which indicated the demand growth of manufacturing employment slightly slowed down. In view of different industries, employed person of fabricated metallic products manufacturing, electrical machinery and equipment manufacturing, non-metallic mineral products manufacturing, foods, liquor, beverages and fine tea manufacturing increased month-on-month, that of automobile manufacturing, processing of timber, furniture manufacturing, paper and printing industry, and cultural, educational, sporting goods manufacturing decreased month-on-month.

Supplier delivery time index was 49.0 percent, 0.6 percentage points lower month-on-month, staying below the threshold for 3 consecutive months, which indicated that the manufacturing supplier delivery time has slowed down.

In addition, the main raw material purchase price index was 44.8 percent, significant downturn in 10.0 percentage points month-on-month, positioned below the threshold, which indicated that the manufacturing main raw material purchase price fell significantly. In view of different industries, the month-on-month prices of the main raw materials of the tobacco industry, processing of timber, furniture manufacturing, and pharmaceutical manufacturing increased, that of processing of petroleum and coking, chemical fiber manufacturing, rubber and plastic manufacturing, smelting and processing of ferrous metal ores, smelting and processing of non-ferrous metal ores, textile industry, and electrical machinery and equipment manufacturing decreased.

In addition, the sub-indices of 11 this month, only produced finished goods inventory index rose to 52.2 percent month-on-month, 2.7 percentage points higher than the previous month, which positioned above the threshold. Part of the enterprises reflected that affected by the market demand, product sales were sluggish, which was resulting in backlog of finished goods inventory and capital return difficulties which affected the production and operation activities.

China's manufacturing PMI (Seasonally adjusted)