Feb. 1, 2012 (China Knowledge) - China's official purchasing managers' index (PMI), a major indicator of the strength of the manufacturing sector, increased by 0.2 points from December to 50.5 in January, according to figures jointly released by the China Federation of Logistics and Purchasing (CFLP) and the National Bureau of Statistics
The PMI for last month was higher than the 49.5 estimated by seven economists at Dow Jones Newswire.
China's PMI for last November fell to 49, which is the first time for index to stay below 50 since March 2009.
CFLP analyst Zhang Liqun said that a further rebound in PMI last month indicated that China's economy is stabilizing.
The production index rose 0.2 points from December last year to 53.6 in January 2012. The new order index increased by 0.6 points to 50.4 compared with December 2011. The new export order index fell 1.7 points month on month, hitting 46.9 last month.
The purchase price index saw an increase of 2.9 points in January, reaching 50.0 points. The import index dropped 2.2 points to 46.9 last month. The product inventory index experienced a larger decline of 2.6 points to 48.0.
The PMI, based on surveys on purchasing managers of 820 enterprises across the country, consists of five sub indices that measure economic performance: production index, new order index, raw material inventory index, employment index and supplier delivery index. A reading of above 50 suggests expansion, while a reading of below 50 indicates contraction.