Yong Yue Medical Technology(Kunshan) Co.,Ltd , https://www.yonyue.com
In June 2013, the China Manufacturing Purchasing Managers Index (PMI), released by the China Federation of Logistics and Purchasing and the National Bureau of Statistics Service Industry Survey Center, stood at 50.1%, a decrease of 0.7 percentage points from the previous month. This decline was reflected across most sub-indices, with several key indicators falling by more than 2 percentage points. Specifically, the expected index for imports, backlog orders, purchase volume, and production activities dropped sharply. The production index, new order index, and new export order index also fell by over 1 percentage point. Meanwhile, other indices saw smaller declines.
Looking at enterprise size, large enterprises maintained a PMI above 50% at 50.4%, while small and medium-sized enterprises recorded PMI readings below 50%, at 49.8% and 48.9%, respectively. Analyst Zhang Liqun commented that the drop in the PMI indicated some downward pressure on the economy, but noted that the index remained above the critical 50% threshold, signaling continued expansion. He highlighted stable investment and consumption growth from January to May, along with a relatively steady export performance, despite external factors like hot money fluctuations. Additionally, low inventory levels suggested limited room for further decline, reinforcing the stability of economic growth.
The new order index for June was 50.4%, down 1.4 percentage points from May. Among surveyed companies, the proportion of those reporting increased new orders decreased by 4 percentage points to 21.8%, while those reporting flat orders rose slightly to 54%. Meanwhile, the share of companies experiencing a decline in new orders increased by 3.8 percentage points to 24.2%.
The production index fell to 52.0%, a drop of 1.3 percentage points. Production volumes increased for 24.3% of companies, down 4.2 percentage points from the prior month, while 53.2% reported no change, and 22.5% experienced a decline.
Raw material inventory declined slightly to 47.4%, down 0.2 percentage points. The proportion of companies increasing raw material inventory fell by 1 percentage point to 12.5%, while those reporting flat inventory levels dropped slightly to 67.4%, and those reducing inventory rose to 20.1%.
The employee index eased slightly to 48.7%, down 0.1 percentage points. The proportion of companies reporting increased employment fell by 1.4 percentage points to 5.0%, while those reporting no change rose to 86.8%, and those reducing staff fell to 8.2%.
The purchase price index dropped slightly to 44.6%, down 0.5 percentage points. Only 7.2% of companies reported higher purchase prices, down 0.1 percentage points, while 74.6% reported no change, and 18.2% reported rising prices.
Survey responses revealed that 47.0% of companies cited insufficient orders, up 4.3 percentage points from May. Labor costs rose for 45.4% of firms, up 0.1 percentage points. Capital constraints were reported by 40.9% of companies, up 1.5 percentage points. Meanwhile, 13.6% of companies mentioned currency appreciation, up 0.9 percentage points. Raw material prices rose for 16.7% of firms, down 1.3 percentage points, and transportation costs increased for 26.5%, down 1 percentage point.
The PMI is a composite indicator based on monthly surveys of purchasing managers across 31 major manufacturing industries. Since January 2013, the sample size has expanded to 3,000 companies. The survey uses a PPS sampling method, ensuring representation based on industry size and revenue. Data is collected through direct reporting via the National Bureau of Statistics network.
The PMI includes 12 key questions, such as production volume, new orders, exports, inventory, purchases, and supplier delivery times. Each question generates a diffusion index, which is then weighted to form the overall PMI. The weights are assigned based on their economic impact: new orders (30%), production (25%), employees (20%), supplier delivery time (15%), and raw material inventory (10%). The supplier delivery time index is inverted during calculation.
All data is seasonally adjusted to account for monthly fluctuations, providing a clearer view of underlying economic trends.