In July, non-manufacturing purchasing manager index was 53.7 percent, 2.6 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 continued to stay above the threshold, achieved 58.0 percent, went down by 3.1 percentage points over the previous month, indicating that the producing growth of construction industry slowed down; that of services industry was 52.6 percent, down by 2.5 percentage points than that in the previous month, of which, non-manufacturing purchasing manager indices of hotel service industry, post industry, Internet, software and IT services industry, retail trade industry were above the threshold, and the total enterprise business kept increasing. Non-manufacturing purchasing manager indices of air transport industry, railway transport industry, ecological protection, environmental management, and public facilities administration industry were below 40 percent, and the total enterprise business has decreased obviously.
The new orders index went down. The new orders index was 51.8 percent, a decrease of 0.9 percentage points over the previous month, which indicating that the market demand of non-manufacturing industry continued to maintain growth, but the growth slowed down. In view of different industries, the new orders index of construction industry was 55.7 percent, up by 0.4 percentage points over the previous month, which indicating that the market demand growth of construction industry kept increasing. The new orders index of service industry was 50.8 percent, 1.3 percentage points lower over the previous month, of which, the new orders indices of hotel service industry, post industry, Internet, software and IT services industry were above the threshold, and the market demand continued to increase. The new orders indices of ecological protection, environmental management, and public facilities administration industry, air transport industry, railway transport industry were below the threshold, and the market demands dropped significantly.
Intermediate input price index remained at the same level over the previous month. This index was 57.5 percent, slightly down by 0.1 percentage points over last month, indicating that the intermediate input price increases of non-manufacturing enterprises has tended to be stable. In view of different industries, the intermediate input price index of construction industry was 52.7 percent, up by 1.8 percentage points over the previous month, staying below the threshold for 3 consecutive months, which indicating that the production and operation costs of construction enterprises have continued to increase. That of service industry was 58.7 percent, dropping 0.6 percentage points over the previous month. The intermediate input price indices of all sub-industries of service industry were staying above the threshold, which indicating that the production and operation costs have a general increase.
The subscription price index continued staying above the threshold. This index was 51.3 percent, went up slightly by 0.1 percentage points over the previous month, staying above the threshold for 2 consecutive months, which showing that the non-manufacturing subscription price went up steadily. n view of different industries, the subscription price index of construction industry was 51.0 percent, an increase of 1.5 percentage points over the previous month. That of services industry was 51.4 percent, a decrease of 0.3 percentage points over the previous month. Of which, the subscription price indices of wholesale and retail trade industry, leasing and business service industry, loading, unloading and warehousing industry were above the threshold, that of air transport industry, telecommunications, radio, television and satellite transmission services industry, water transport industry were below the threshold.
Business activities expectation index dropped back. This index was 60.9 percent, down by 2.3 percentage points over the previous month, and declined for 3 consecutive months, which showing that the proportion of non-manufacturing enterprises maintaining optimistic about the operating expectation in the future decreased, but still placed highly in the range. In view of different industries, the business activities expectation indices of post industry, retail trade industry, Internet, software and IT services industry positioned in a high place which above 70 percent.
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 manufacturing sectors as the selecting layers, distribution of sample size was according to their value-added accounted for the proportion of total manufacturing value-added, and samples within layers and the main 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.
