Posted on 31 Jan 2024
China's Purchasing Managers' Index (PMI) for the manufacturing industry rebounded in January 2024 after three consecutive months of dips, though up by a slight 0.2 index point on month to 49.2, according to the latest release by the country's National Bureau of Statistics (NBS) on January 31. The reading marked another month in the contraction zone since last October.
The rise in this month's manufacturing PMI indicated a modest improvement in the industry, commented Zhao Qinghe, senior statistician at NBS.
Specifically, the supply and demand of the country's manufacturing industry both expanded this month, with the sub-index of production recovering from a three-month fall by 1.1 points on month to 51.3, which also recorded the highest level in four months.
As for demand, the sub-index of new orders went up too by 0.3 point on month to log 49 in January, the NBS data showed. Meanwhile, this sub-index for high-tech manufacturing, equipment manufacturing and consumer goods sectors registered 50.2, 50.3 and 50.3 respectively, all above the 50 threshold.
By the scale of enterprises, PMI for large-sized enterprises increased by 0.4 point from December 2023 to reach 50.4, according to the release. Also, a survey conducted by the NBS showed that over 70% of large manufacturing enterprises achieved or surpassed a capacity utilization rate of 80%.
Improved performance was also seen at medium-sized firms, as their PMI was 0.2 point higher on month at 48.9. Nevertheless, PMI for small-sized manufacturers sat at a low level of 47.2 after an on-month fall of 0.1 point.
Overall, domestic manufacturers remained confident regarding the near-term market development, with their sentiment index scoring high again at 54 despite a monthly drop of 1.9 points due to the traditional off season for many manufacturing sectors, according to Zhao.
In January, China's non-manufacturing industry grew to 50.7, up for the second month by another 0.3 point, reflecting a steady growth in the industry.
Nevertheless, the sub-index for business activities in the construction sector dropped by 3 points from the prior month to 53.9, due to the decelerated construction activities amid low outdoor temperatures and the approach of the Chinese New Year holiday starting February 10.
Source:Mysteel Global
