Purchasing Managers Index for June 2021

1. Manufacturing Purchasing Managers Index

In June, the Purchasing Manager Index (PMI) of China's manufacturing industry was 50.9 percent, a slight drop of 0.1 percentage point compared with last month, and continued to be above the threshold. The manufacturing industry continued to expand steadily.

In terms of enterprise scale, the PMI of large and medium-sized enterprises were 51.7 and 50.8 percent respectively, 0.1 and 0.3 percentage point lower than that of last month, both higher than the threshold; the PMI of small enterprises was 49.1 percent, up 0.3 percentage point from last month, lower than the threshold.

From the perspective of sub index, in the five sub-indexes of manufacturing PMI, production index and new order index were higher than the threshold, while raw material inventory index, employee index and supplier delivery time index were lower than the threshold.

The production index was 51.9 percent, 0.8 percentage point lower than that of last month, higher than the threshold, indicating that the production of manufacturing industry kept expanding, but the pace slowed down.

The new orders index was 51.5 percent, up 0.2 percentage point from last month, higher than the threshold, indicating that the manufacturing market demand continued to grow.

The raw material inventory index was 48.0 percent, up 0.3 percentage point from the previous month, lower than the threshold, indicating that the decline of main raw material inventory in the manufacturing industry narrowed.

The employment index was 49.2 percent, up 0.3 percentage point from last month, lower than the threshold, indicating that the employment situation of manufacturing enterprises improved slightly compared with last month.

The delivery time index of suppliers was 47.9 percent, which was 0.3 percentage point higher than that of last month, but it was lower than the threshold, indicating that the delivery time of raw materials suppliers in manufacturing industry continued to slow down.

2. Non-manufacturing purchasing managers index

In June, the non-manufacturing business activity index was 53.5 percent, down 1.7 percentage points from last month, and the expansion of non-manufacturing industry was weakened.

By industry, the construction industry business activity index was 60.1 percent, flat with last month. The business activity index of service industry was 52.3 percent, 2.0 percentage points lower than that of last month. From the perspective of industry situation, the business activity index of post, telecommunications, radio and television satellite transmission services, monetary and financial services, capital market services, and insurance was in a relatively high boom range of more than 59.0 percent; the business activity index of air transportation, accommodation, catering, real estate, leasing and business services industries was below the threshold.

The new orders index was 49.6 percent, 2.6 percentage points lower than that of last month, lower than the threshold, indicating that the demand of non-manufacturing market was lower than that of last month. By industry, the new order index of construction industry was 51.2 percent, down 2.6 percentage points from last month; the index of new orders in the service industry was 49.4 percent, down 2.6 percentage points from the previous month.

The price index of inputs was 53.4 percent, 4.3 percentage points lower than that of last month, higher than the threshold, indicating that the price increase of inputs used by non-manufacturing enterprises for business activities was significantly narrowed. By industry, the price index of construction inputs was 51.7 percent, down 21.9 percentage points from last month; the price index of service inputs was 53.7 percent, down 1.2 percentage points from last month.

The sales price index was 51.4 percent, which was 1.4 percentage points lower than that of the previous month and higher than the threshold, indicating that the increase of sales price of non-manufacturing industries fell back. By industry, the sales price index of the construction industry was 52.0 percent, down 5.0 percentage points from last month; the sales price index of the service industry was 51.2 percent, down 0.8 percentage point from the previous month.

The employment index was 48.0 percent, down 0.9 percentage point from the previous month, indicating that the employment outlook of non-manufacturing industries had decreased. By industry, the employment index of the construction industry was 50.3 percent, down 2.7 percentage points from last month; the employment index of the service industry was 47.6 percent, down 0.6 percentage point from the previous month.

The expected index of business activities was 60.8 percent, 2.1 percentage points lower than that of last month, and it was still in the high economic zone, indicating that non-manufacturing enterprises continue to be optimistic about the development of the industry. By industry, the expected index of business activities in the construction industry was 63.2 percent, down 2.5 percentage points from last month; the expected index of business activities in the service industry was 60.4 percent, down 2.0 percentage points from last month.

3. Composite PMI Output Index

In June, the comprehensive PMI output index was 52.9 percent, 1.3 percentage points lower than that of last month, indicating that the overall expansion pace of production and operation activities of Chinese enterprises had slowed down.