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Purchasing Managers' Index (PMI) in China from May 2016 to May 2017 (50 = no change)

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Index value (50 = no change)
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About This Statistic

The statistic shows the Purchasing Managers' Index (PMI) in China until May 2017. In May 2017, the PMI resided at about 51.2 percent. An indicator of the economic health of the manufacturing sector, the Purchasing Managers' Index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment. An index value above 50 percent indicates a positive development in the industrial sector, whereas a value below 50 percent indicates a negative situation.


Purchasing Managers’ Index – additional information

The Purchasing Managers’ Index, or PMI, was first introduced by the US-based Institute of Supply Management in 1948. It has become one of the most widely used and closely watched indicators of business activities worldwide. The PMI is not only an apt indicator for manufacturing growth, it also supports interest rate decisions of central bank institutions.

In the Euro area, it was a rollercoaster of a year for the average PMI. The index had plunged below 50 points during H1 2013, indicating a decline in the manufacturing sector. H1 2014 readings show the index steadying after a positive spike in H2 2013, in total displaying a slight recovery of manufacturing activities. In the United States, the monthly PMI had reached nearly 60 percent in August 2014, a three-year high. In contrast, manufacturing activities of Japan, despite the depreciation of yen, show hardly any development in the sector between April and July 2014.

As is shown in the graph at hand, the PMI of China as the world’s second-largest economy hovered between 50.1 and 51.7 index points during 2014. The non-manufacturing PMI in China had displayed an 8-month low in September 2014, suggesting a slowing development of China’s service sector.

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