The China Manufacturing Purchasing Managers Index (PMI) for July 2020 released by the China Federation of Logistics and Purchasing and the Service Industry Survey Center of the National Bureau of Statistics was 51.1%, an increase of 0.2 percentage points from the previous month.

china manufacturing PMI

From the perspective of 13 sub-indices, compared with the previous month, production index, new order index, new export order index, backlog order index, finished product inventory index, purchase volume index, import index, purchase price index, raw material inventory index , Employer index and production and operation activity expectations index rose, the index rose between 0.1 to 5.8 percentage points; the ex-factory price index and supplier delivery time index fell, the index fell by 0.2 and 0.1 percentage points respectively.

the manufacturing PMI index continued to increase slightly in July, indicating that China’s economy continues to maintain a rebound trend. In terms of sub-indices, both the production and supply indicators have maintained an upward trend, indicating that the recovery and recovery of the manufacturing industry are comprehensive, and the production operation cycle is smooth and tends to accelerate. Judging from the magnitude of the recovery of major indicators, the overall still remains low, indicating that the strength of the economic recovery is not strong enough. According to the survey of relevant enterprises, the proportion reflecting the lack of demand and orders is still the highest. Therefore, the contradiction of insufficient market demand is still a prominent problem restricting the current economic recovery. It is necessary to further do a good job in expanding domestic demand, effectively activate and release the investment and consumption potential of the ultra-large domestic market, and promote the recovery of China’s economy to a more stable and solid momentum.

The production index was 54.0%, an increase of 0.1 percentage point from the previous month. In terms of enterprise scale, the production index of large and medium-sized enterprises is higher than 50%, 55.3% and 54.7%, respectively; the production index of small enterprises is lower than 50%, which is 49.8%.

The new order index was 51.7%, an increase of 0.3 percentage points from the previous month. In terms of enterprise scale, the production index of large and medium-sized enterprises is higher than 50%, 53.3% and 52.3%, respectively; the new order index of small enterprises is lower than 50%, which is 46.8%.

The new export order index was 48.4%, an increase of 5.8 percentage points from the previous month. From the perspective of enterprise scale, the new export order index of large, medium and small enterprises are all below 50%, at 49.0%, 48.2% and 45.0% respectively. 

The backlog of orders index was 45.6%, an increase of 0.8 percentage points from the previous month. From the perspective of enterprise scale, the backlog orders of large, medium and small enterprises are all lower than 50%, which are 46.3%, 46.3% and 42.7% respectively.

The finished product inventory index was 47.6%, an increase of 0.8 percentage points from the previous month. From the perspective of enterprise scale, the finished product inventory index of large, medium and small enterprises are all below 50%, which are 47.8%, 48.0% and 46.5% respectively. 

The purchase volume index was 52.4%, an increase of 0.6 percentage point from the previous month. From the perspective of enterprise scale, the purchasing volume index of large and medium-sized enterprises is higher than 50%, 54.1% and 51.6%, respectively; the purchasing volume index of small enterprises is lower than 50%, which is 49.3%. 

The import index was 49.1%, an increase of 2.1 percentage points from the previous month. In terms of enterprise scale, the import index of large, medium and small enterprises are all below 50%, which are 49.4%, 49.1% and 46.3% respectively.

The purchase price index was 58.1%, an increase of 1.3 percentage points from the previous month. From the perspective of enterprise scale, the purchase price index of large, medium and small enterprises is higher than 50%, 59.0%, 57.5% and 56.7% respectively.

The ex-factory price index was 52.2%, a decrease of 0.2 percentage points from the previous month. From the perspective of enterprise size, the ex-factory price index of large and medium-sized enterprises is higher than 50%, which are 53.6% and 51.8%, respectively; the ex-factory price index of small enterprises is lower than 50%, which is 49.3%. 

The raw material inventory index was 47.9%, an increase of 0.3 percentage points from the previous month. From the perspective of enterprise scale, the raw material inventory index of large, medium and small enterprises are all below 50%, which are 47.7%, 48.0% and 48.3% respectively.

The employment index was 49.3%, an increase of 0.2 percentage points from the previous month. From the perspective of enterprise scale, the employment index of large enterprises is higher than 50%, which is 50.3%; the employment index of medium and small enterprises is lower than 50%, which is 47.6% and 49.2% respectively.

The supplier delivery time index was 50.4%, a decrease of 0.1 percentage point from the previous month. From the perspective of enterprise scale, the supplier delivery time index of large and small enterprises is higher than 50%, 50.9% and 50.4% respectively; the supplier delivery time index of medium-sized enterprises is lower than 50%, which is 49.6%.

The expectation index of production and operation activities was 57.8%, an increase of 0.3 percentage points from the previous month. From the perspective of enterprise scale, the production and operation expectations index of large, medium and small enterprises are all higher than 50%, being 59.5%, 57.4% and 54.0% respectively.