Manufacturing PMI at 49% in July, new momentum to maintain upward momentum

The National Bureau of Statistics Service Industry Survey Center and the China Federation of Logistics and Purchasing released data on July 31 showing that the manufacturing purchasing managers' index (PMI) stood at 49 percent in July, down 1.2 percentage points from the previous month. In addition, the price index fell significantly.

July, affected by the traditional production off-season, insufficient release of market demand, high energy-consuming industries, such as low prosperity, the manufacturing PMI fell to 49%. Zhao Qinghe, a senior statistician at the National Bureau of Statistics Service Industry Survey Center, said.

Zhao Qinghe analysis, said the survey of 21 industries, there are 10 industries PMI is located in the expansion zone, including agricultural and food processing, food and alcoholic beverages refined tea, special equipment, automotive, railroad, shipbuilding and aerospace equipment and other industries PMI is higher than 52%, for two consecutive months to maintain the expansion of production and demand continued to recover. Textile, petroleum, coal and other fuel processing, ferrous metal smelting and rolling processing and other high-energy-consuming industries PMI continues to be located in the contraction zone, significantly lower than the overall level of manufacturing industry, is one of the main factors in this month's PMI fell.

In addition, the price index fell significantly. Affected by oil, coal, iron ore and other international commodity price fluctuations and other factors, the main raw materials purchasing price index and factory price index were 40.4% and 40.1%, down 11.6 and 6.2 percentage points from the previous month. Among them, the ferrous metal smelting and rolling processing industry two price index in the survey industry the lowest, raw material purchase price and product factory prices fell significantly.

The index of production and business activity expectations is located in the expansion zone. Zhao Qinghe said that the recent internal and external environment of China's economic development has become more complex and severe, the production and operation of enterprises continue to be under pressure, the market is expected to be affected to some extent, production and business activity is expected to index 52%, down 3.2 percentage points from the previous month, continues to be located in the expansion zone.

New momentum to maintain the momentum of industrial structure continues to optimize. July, equipment manufacturing PMI and high-tech manufacturing PMI were 51.2% and 51.5%, respectively, are maintained at 51% above the expansion zone. Sub-index shows that the equipment manufacturing industry and high-tech manufacturing industry supply and demand growth rate are maintained at a relatively good level.

Changes in the sub-indexes show that market demand fell in July, and enterprise production and business activities slowed down. However, the cost pressure on enterprises dropped significantly, employment remained relatively stable, and new momentum still maintained its upward momentum. Wen Tao, a researcher at the China Logistics Information Center, said the current economic rebound fluctuations have certain short-term factors, and the second half of the year to maintain a stable rebound to the good, there are still foundations and conditions.

Wen Tao pointed out that the decline in cost pressures on enterprises is conducive to the recovery of corporate benefits. Domestic commodity prices fell from a high level. The purchasing price index fell sharply by 11.6 percentage points from the previous month to 40.4 percent, falling for four consecutive months and accelerating the downward trend.

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