China's official PMI edges down to 51.0 in Dec 2013

02 January 2014 04:45 Source:ICIS News

SINGAPORE (ICIS)--China’s purchasing managers’ index (PMI) edged down to 51.0 in December compared with 51.4 in previous month, as a result of falling export orders towards the end of the year, industries sources said on Thursday.

New export orders index went down by 0.8 from the previous month at 49.8, and the import index was 1.5 lower at 49.0, both below the 50-point threshold, according to data from the China Federation of Logistics & Purchasing (CFLP).

The decrease in the domestic PMI in December resulted from the seasonal reasons, as demand was muted during western holidays of Christmas and New year, as well as the Chinese Lunar New Year holidays that will take place at the end of January, CFLP analyst Zhang Liqun said.

New orders index also tumbled by 0.3 points to 52.0 in December.

The production sub-index for December fell to 53.9 from 54.5 month on month, and purchasing volumes dropped to 52.7 in December from 53.6 in previous month, according to the data.

China’s PMI is based on a survey of 3000 manufacturers. A PMI reading above 50.0 indicates an expansion, while a reading below 50.0 means a contraction.

By Viola Pan