June manufacturing PMI falls
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E-mail China.org.cn, July 1, 2013
The purchasing managers' index (PMI) for the manufacturing sector fell to 50.1 percent in June from 50.8 percent in May, according to data issued by the China Federation of Logistics and Purchasing (CFLP) on Monday.
The official purchasing managers' index, a comprehensive gauge of operating conditions in China's state-owned industrial companies, retreated to 50.1 last month. The pace, the slowest in four months, slipped from May's 50.8 and April's 50.6.
A PMI reading greater than 50 indicates expansion, while a reading below 50 indicates contraction.
Major PMI compounds all declined in June, indicating downward pressure on the economy, said Zhang Liqun, an analyst with the Development Research Center of the State Council.
But Zhang also added that economic growth is still in a process of stabilizing. Inventories have reached a historically low level, suggesting limited room for further decreases, he said.
Investment and consumption remained generally stable in the first five months of the year and the actual export growth rate did not see a significant fall, Zhang explained, adding that policies targeting stable growth will gradually take effect.
In June, the sub-index for production moved down from 53.3 percent in May to reach 52.0 percent, while the sub-index for new orders lost 1.4 percentage points to hit 50.4 percent, according to a joint statement from CFLP and the National Bureau of Statistics.
The sub-index for raw material inventories was down 0.2 percentage points from the previous month to 47.4 percent in June, marking the fifth consecutive month of shrinking stocks.
The sub-index for the purchase prices of raw materials lost 0.5 percentage points to reach 44.6 percent in June, staying below the 50-percent demarcation line for a third consecutive month.
The employment sub-index changed slightly, slipping to 48.7 from 48.8 percent, marking a 13th month below 50 percent.
The sub-index for supplier delivery times edged down 0.5 percentage points to 50.3 percent.
On Monday, British bank HSBC also released its PMI data, which further dropped to 48.2 from 49.2 in May, hitting a new low in nine months.
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