In July, non-manufacturing purchasing manager index was 55.6 percent, 1.1 percentage points lower over the previous month, still staying above the threshold.
In view of different industries, non-manufacturing purchasing manager index of construction industry was 60.4 percent, went up 2.3 percentage points over the previous month, still placed in the high level of the range; that of services industry was 54.4 percent, down by 1.9 percentage points month-on-month, of which, non-manufacturing purchasing manager indices of air transport industry, leasing and business service industry, telecommunications, radio, television and satellite transmission services industry were above the threshold, and the total enterprise business kept increasing, that of hotel service industry, post industry, road transport industry and retail trade industry were below the threshold, the total enterprise business decreased.
The new orders index went down. The new orders index was 53.2 percent, a decrease of 0.5 percentage points over the previous month, which indicating that the new orders of non-manufacturing enterprises continued to maintain growth, but the growth slowed down slightly. In view of different industries, the new orders index of construction industry was 57.0 percent, up by 2.8 percentage points over the previous month, which indicating that the market demands growth of construction industry accelerated. The new orders index of service industry was 52.2 percent, 1.4 percentage points lower over the previous month, of which, the new orders indices of air transport industry, leasing and business service industry, Internet, software and IT services industry, telecommunications, radio, television and satellite transmission services industry were above the threshold, the market demands increased, that of water transport industry, hotel service industry and post industry were below the threshold, the market demands decreased.
Intermediate input price index dropped below the threshold. This index was 49.7 percent, down 2.4 percentage points over the previous month, positioned below the threshold, which was the lowest point since January 2009, indicating that the intermediate input price of non-manufacturing enterprises fell down in the course of business. In view of different industries, the intermediate input price index of construction industry was 46.2 percent, down 1.0 percentage points over the previous month, stayed below the threshold for 3 consecutive months, which indicating that the production and operation costs of construction enterprises continued to decline, that of service industry was 50.5 percent, dropping 2.8 percentage points over the previous month. Of which, the intermediate input price indices of resident services and repairs industry, leasing and business service industry, Internet, software and IT services industry, air transport industry were above the threshold, that of water transport industry, road transport industry, wholesale trade industry, post industry and hotel service industry were below the threshold.
The subscription price index stayed below the threshold for 3 consecutive months. This index was 48.7 percent, stayed basically the same level over the previous month, which showing that the non-manufacturing subscription price continued to fall back. In view of different industries, the subscription price index of construction industry was 47.6 percent, a decrease of 1.1 percentage points over the previous month, and the enterprise subscription price continued to decrease, that of services industry was 49.0 percent, an increase of 0.4 percentage points over the previous month. Of which, the subscription price indices of air transport industry, leasing and business service industry, ecological protection and environmental management industry were above the threshold, that of wholesale trade industry, retail trade industry, post industry, telecommunications, radio, television and satellite transmission services industry were below the threshold.
Business activities expectation index dropped back from a high place. This index was 63.9 percent, down by 1.6 percentage points over the previous month, but still placed in the high level of the range, which indicating that the non-manufacturing enterprises still maintained optimistic about the operating expectation in the future. In view of different industries, the business activities expectation indices of Internet, software and IT services industry, post industry, air transport industry and house construction industry were all staying in a high level of 70 percent and above.
Annotations:
1. Seasonal Adjustment Note
The purchasing manager’s survey is a monthly survey, great fluctuations of data which affected by seasonal factors. At present, time series of China's non-manufacturing PMI have met the technical requirements of the seasonally adjustment, and the sub-indices of non-manufacturing PMI data on seasonally adjusted will be released since March 2012.
2. Explanatory Notes
China non-manufacturing purchasing manager index system constituted by 10 sub-indices, they are business activity index, new orders index, new export orders index in hand orders index, stock index, intermediate input price index, subscription price index, employment index, supplier delivery time index, and business activities expectation index. Due to the lack of synthesis of non-manufacturing integrated PMI index, the international society often used business activity index to reflect the overall changes in non-manufacturing economic development, A PMI reading above 50 percent indicates expansion from the previous month, while below indicates contraction.
3. Statistical Coverage
The survey involves 27 manufacturing industry categories in the “Industrial Classification for National Economic Activities" (GB/T4754-2011), and was conducted in 1200 sampling enterprises of the non-manufacturing sector countrywide.
4. Survey Methods
Non-manufacturing purchasing managers’ survey was conducted in PPS (Probability Proportional to Size) sampling method, using the non-manufacturing sectors as the selecting strata, distribution of sample size was according to their value-added accounted for the proportion of total non-manufacturing value-added, and samples within the stratum and the principal business revenue of the enterprises were selected by the PPS.
The survey was conducted by Direct Reporting of Statistics Networking and carried out by interviewing the enterprises’ purchasing managers monthly using questionnaire method.
5. Calculation Methods
Non-manufacturing purchasing managers survey involves 10 questions on production, new orders (business required), export, existing orders, finished goods inventory, intermediate input price, subscription price, employees, suppliers delivery time, and business activities expectation. Diffusion index was calculated on each question, i.e. percentage of positive answers in number of enterprises plus half of the percentage in the same answers.
