PMI index slows the lowest rate in March.
According to the Caixin report, China Purchasing Managers’ Index is 49.7 in March, despite falling gain but at the slowest rate in the past 13 months.
What is PMI?
In China, the PMI measures the performance of the manufacturing sector, and the data comes from a survey of 430 industrial companies. Five individual indexes as follows consist this manufacturing index:
New Orders (30 percent),
Output (25 percent),
Employment (20 percent),
Suppliers’ Delivery Times (15 percent)
and Stock of Items Purchased (10 percent),
Reading of 50 is a watershed. A reading above 50 shows an expansion compared to the previous month in manufacturing sector; below 50 indicates a shrinkage; and 50 represents no change.
In March of 2016, Manufacturing PMI in China shows 1.7 points higher than the value of 48 in February. In spite of being below 50, it has been the highest record since March 2015. For your reference, Manufacturing PMI in China averaged 49.36 from 2011 until 2016, with the highest value of 52.3 in Jan. 2013, and lowest one of 47.2 in Sep 2015.
Who is driving the economy?
It is said moderate stimulus measures taken by government may be the main power to push forward the economics. As Zhou Xiaochuan, the governor of People’s Bank, said, China will use more tools in the monetary policy to deal with the slowdown.
YT components saw the rising demand.
YT components has been also witnessing this slight change. Our new orders have been boosted after Chinese New Year, covering bearing ring, ring gear, wind power parts and so on. With our experienced experts in forging, machining, and heat treatment, we are confident of the recovering demand globally and domestically from the industrial field.