China’s manufacturing PMI dips to 52 in June
China’s purchasing manager’s index (PMI), an important indicator of the health of the country’s manufacturing industry, fell to a near three-year low of 52 in Jun., a drop of 1.3 points from 53.3 a month earlier, statistics from the China Federation of Logistics and Purchasing (CFLP) showed.
PMI is a composite index that represents purchasing managers expectations of buying industrial inputs in domestic markets, as well as from abroad.
A reading above 50 indicates overall economic expansion, while a figure below 50 represents a contraction. China’s PMI has been above 50 since Jan. 2005.
In June, the barometer of future demand for industrial raw materials and other inputs fell for a third straight month to 52.6, compared with 55.4 in May and 65.0 in April. The new export orders index dipped from 53.4 in the previous month to 50.2 amid a global economic slowdown.
The input-price index, which gauges manufacturers’ procurement costs, rose to its highest level in June since it was launched in 2005, when it stood at 75.7, up from 73.9 in May. The output-index dropped to 54.2 last month, from 55.7 a month ago.
Economic researchers warn that China should be more prudent about changes in economic policies in the midst of varying demand and adopt a balanced approach toward economic growth and worsening inflation.
China’s 2008 GDP growth is expected to slide to a single-digit figure for the first time since 2003, while inflation is likely to touch a 12-year high of around 7% this year.
Tags: economic, inflation