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China’s manufacturing PMI dropped to 50.0 in January from 50.2 in
December. The latest PMI reading indicates that China’s manufacturing
sector lacks growth momentum.
6 of the 13 sub-indices were lower than their respective levels in the
previous month. For example, the output index declined by 1.9 pts from
the previous month to 51.3 in January, indicating that the growth of
production activities has slowed. Moreover, the new export orders index
fell below the critical 50-mark in January, returning to the contractionary
zone. In contrast, the new orders index edged up from 51.2 in December
to 51.4 in January, indicating that the new orders have increased at a
faster pace lately.
By size of enterprises, the PMI of ‘large enterprises’ came in at 50.4 in
January, down from 50.6 in December. The PMI of ‘medium enterprises
dropped to 50.1 in January from 51.4 in December. The PMI of ‘small
enterprises’ went up to 48.6 in January from 47.2 in December.
The output index came in at 51.3 in January, down from 53.2 in
December. The output indices of ‘large enterprises’ and ‘medium
enterprises’ stayed above the critical 50-mark, registering 51.5 and 52.2
respectively in January. Meanwhile, the output index of ‘small
enterprises’ stayed below the critical 50 mark, registering 49.3 in the
month.