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China March manufacturing PMI rose to 50.2% return above the critical point

  • Author:Thomas
  • Source:BBC
  • Release on:2016-04-19

China National Bureau of StatisticsFriday (April 1) released in March 2016 China Manufacturing Purchasing Managers Index (PMI). China PMI index in March was 50.2 percent, up 1.2 percentage points since August 2015 for the first time above the critical point.

Sub-enterprise scale, large enterprises PMI was 51.5 percent, up 1.6 percentage points; Medium PMI was 49.1% last month picked up 0.1 percentage points; small businesses PMI was 48.1%, 3.7 percentage points last month, picked up, still in the contraction zone.

From the classification index, constitute the five manufacturing PMI index, the production index, new orders, supplier delivery time index above the critical point, employing index and raw materials inventory index below the critical point. The increase was more include the production index was 52.3 percent, up 2.1 percentage points. The new orders index was 51.4 percent, up 2.8 percentage points.

China National Bureau of Senior Statistician Zhao Qing River analysts said this month China PMI back to expansionary territory, affected by certain seasonal factors, but should be noted that there are still many difficulties in production and operation. This month reflect financial constraints, lack of market demand and rising labor costs, although the proportion of businesses has dropped slightly last month, but still more than four percent, especially small businesses reflect the situation of shortage of funds which had been intensified.

Zhao Qing River, said Chinese manufacturing PMI for the first time back to the critical point since August last year or more, indicating that some positive changes began to appear. He believes that China March manufacturing operation Main features include: Spring Festival enterprises began to focus on manufacturing production and the market has been warmer; manufacturing and export demand picked up, return to the expanded state, this month the new export orders index was 50.2 percent, up 2.8 percentage points, the first time since October 2014 rose above the critical point. Import index was 50.1%, and up 4.3 percentage points, the highest point since December 2013. In addition, the recent rise in international commodity price shocks and an important part of the circulation of goods prices continued to rebound, corporate procurement activities to become more active.

ANZ Bank (ANZ) senior economist Yang Yuting said in a report released today, he said China's official manufacturing PMI index higher than market expectations. Even after deducting seasonal factors rose last year after the Spring Festival, or is still large. Between 2011 and 2015, China March manufacturing PMI index by an average 0.9 percentage points higher than in February.

The report said that China's manufacturing index unexpectedly rose factor is likely to accelerate investment in infrastructure and electronics industry to pick up supplies. China's steel industry index of the month there has been a sharp rise.

The report predicts that, despite the manufacturing index to pick up, but China's central bank may still cut interest rates again.

Yang Yuting an interview with BBC interview that China's manufacturing industry can appear a sustained rebound is still unable to determine, the future trend remains to be seen two or three months.