China's manufacturing sector PMI 49.5 fell 0.2 percentage points in August

According to the news of the National Bureau of Statistics on 31 August, the statistics bureau announced the operation of the purchasing manager index of China in August 2019.

1. The operation of China's Manufacturing Purchasing Manager Index

In August 2019, China's Manufacturing Purchasing Manager Index (PMI) was 49.5%, down 0.2 percentage points from last month.

From the perspective of enterprise scale, the PMI of large enterprises is 50.4%, lower than 0.3 percentage points last month, still in the expansion zone; the PMI of medium enterprises is 48.2%, down 0.5 percentage points from last month, below the critical point; and the PMI of small enterprises is 48.6%, up 0.4 percentage points from last month, below the critical point.

From the classification index, the production index and supplier distribution time index are higher than the critical point, while the new order index, raw material inventory index and employee index are lower than the critical point. The production index was 51.9%, down 0.2 percentage points from last month, still higher than the critical point, indicating that the gross domestic product of manufacturing industry continued to expand. The new order index is 49.7%, which is 0.1 percentage point lower than that of last month. It is below the critical point, indicating that the order quantity of manufactured products has decreased. The stock index of raw materials is 47.5%, which is 0.5 percentage point lower than that of last month. It is below the critical point, indicating that the stock of main raw materials in manufacturing industry has decreased. The employees index is 46.9%, down 0.2 percentage points from last month, which is below the critical point, indicating that the employment of manufacturing enterprises has fallen. The supplier distribution time index is 50.3%, up 0.2 percentage points from last month, above the critical point, indicating that the delivery time of raw material suppliers in manufacturing industry is accelerating.

2. The operation of China's non-manufacturing PMI

On August 2019, the non-manufacturing business activity index was 53.8%, up 0.1 percentage points from the previous month, indicating that the non-manufacturing industry has maintained its overall expansion momentum and the growth rate has accelerated slightly. According to the sub-industry, the business activity index of service industry is 52.5%, down 0.4 percentage points from last month, and the expansion speed of service industry has slowed down. From the perspective of industry categories, the index of business activities in railway transportation, telecommunications, radio and television satellite transmission services, Internet software and information technology services and other industries is located in a high boom range of 58.0%, and business activities are more active. Business activity index of road transport industry, other financial industry and real estate industry is in the contraction range. The business activity index of the construction industry was 61.2%, up 3.0 percentage points from last month, and the prosperity of the construction industry increased. The new order index is 50.1%, down 0.3 percentage points from last month, slightly higher than the critical point, indicating that the growth of non-manufacturing market demand has slowed down. In terms of industry, the service industry new orders index was 49.4%, down 0.3 percentage points from last month; the construction industry new orders index was 53.9%, down 0.8 percentage points from last month. The input price index is 50.8%, down 2.1 percentage points from last month, still above the critical point, indicating that the overall increase of the input price for business activities of non-manufacturing enterprises has narrowed. In terms of industry, the service industry input price index is 51.2%, down 1.5 percentage points from last month; the construction industry input price index is 48.9%, down 4.7 percentage points from last month. The sales price index is 49.1%, down 1.5 percentage points from last month and below the critical point, indicating that the overall level of non-manufacturing sales price has fallen. In terms of industry, the service industry sales price index is 48.7%, down 1.8 percentage points from last month; the construction industry sales price index is 51.5%, up 0.4 percentage points from last month.

Employees Index was 48.9%, up 0.2 percentage points from last month, below the critical point, indicating that the employment prosperity of non-manufacturing enterprises continued to rise. In terms of industry, the service industry employee index is 48.2%, up 0.1 percentage points from last month; the construction industry employee index is 52.7%, up 0.6 percentage points from last month. The business activity expectation index is 60.4%, up 0.6 percentage points from last month, returning to the high-level boom range, indicating that non-manufacturing enterprises have increased confidence in future market development. In terms of sub-sectors, the expected index of service business activities is 59.8%, up 0.7 percentage points from last month; the expected index of construction business activities is 64.0%, up 0.3 percentage points from last month