July Manufacturing Purchasing Managers Index of 53.3%

According to the latest data released by the China Federation of Logistics and Purchasing, the China Manufacturing Purchasing Managers Index (PMI) was 53.3% in July, up 0.1 percentage point from the previous month.
Zhang Liqun, a researcher at the Development Research Center of the State Council and a special analyst at the China Federation of Logistics and Purchasing, believes that the July PMI index indicates that economic operations continue to pick up, which is consistent with the economic trend shown in the first half of the economic data. Looking forward, as domestic demand growth accelerates, it is expected that the economy will continue to maintain its upward trend.
Among the various indexes, compared with the previous month, only the import index decreased by 1 percentage point; the new order index was flat; the other indexes all showed a slight increase. The purchase price index rose by 2.1 percentage points, approaching the 60% high point, and the uptrend was more significant; the production index, the new export order index, the backlog of orders index, and the purchase volume index were not much higher, all within 1 percentage point.
The new order index for this month was 55.5%, which was the same as last month. In terms of industries, 14 of the 20 industries are higher than 50%, of which ferrous metal smelting and rolling processing industries, non-metallic mineral products industry and other five industries reach more than 60%; clothing and footwear manufacturing and fur down products Industry, transportation equipment manufacturing, textile industry and other six industries are less than 50%.
The new export order index continues to rise. The new export order index for this month was 52.1%, up 0.7 percentage points from the previous month. Among the 20 industries, 10 industries are higher than 50%, among which the petroleum processing and coking industry, non-metallic mineral products industry, tobacco products industry, paper printing and cultural and educational sporting goods manufacturing industry have reached more than 60%.
The production index rose steadily. The production index for this month was 57.3%, up 0.2 percentage points from the previous month. The purchase price index continues to climb. The purchase price index for this month was 59.9%, up 2.1 percentage points from the previous month. So far, the index has risen for eight consecutive months.
The manufacturing PMI is a composite index that is weighted by five major diffusion indices in accordance with internationally accepted practices. Usually the PMI index is above 50%, reflecting the overall expansion of the economy; below 50%, reflecting the economic recession. Since November last year, the PMI index has continued to improve, and since March this year, it has remained above 50%.

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