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China's PMI falls to 50.1 in Jul

Aug. 1, 2012 (China Knowledge) - China's official purchasing managers' index, a major indicator of the strength of the manufacturing sector, dropped to 50.1 in July, an decrease of 0.1 points from 50.2 in June, according to figures jointly released by the China Federation of Logistics and Purchasing and the National Bureau of Statistics.

The PMI last month reflected a decline for three consecutive months.

The PMI for large enterprises was 50.3, down 0.3 points from June, and that for medium-sized enterprises rose 0.2 points MoM to 50.2. The PMI for small enterprises increased 0.9 points to 48.1 last month, below 50 for the fourth consecutive month.
The production index decreased 0.2 points from the previous month to 51.8 in July, the lowest level since December 2011. The new order index fell 0.2 points to 49.0 last month, standing below 50 for three consecutive months. The new export order index decreased 0.9 points from June to 46.6 last month, and import index fell 1.5 points to 45.0.
The raw material inventory index increased 0.3 points to 48.5 in July.  The employment index continued to fall, hitting 49.5 last month.

The PMI 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 one below 50 indicates contraction.

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