China's Non-manufacturing PMI Increased in December National Bureau of Statistics of China
China Federation of Logistics and Purchasing (CFLP)
In December, non-manufacturing purchasing manager index was 56.1 percent, an increase of 0.5 percentage points over the previous month.
In view of different industries, non-manufacturing purchasing manager index of construction industry continued to stay above the threshold, achieved 61.9 percent, went up by 0.6 percentage points over the previous month, positioned in the high level of the range. That of services industry was 54.7 percent, up by 0.5 percentage points than that in the previous month. Of which, the indices of post industry, Internet, software and IT services industry, retail trade industry, telecommunications, radio, television and satellite transmission services industry stayed at 60 percent and above, while the total enterprise business of ecological protection, environmental management and public facilities administration industry, road transport industry, hotel service industry, leasing and business service industry decreased over last month.
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.
