Manufacturing PMI Continue Steady Expansion High-end Manufacturing Accelerated Expansion

February 1, the national bureau of statistics service industry research center and the China federation of logistics and purchasing released the purchasing managers' index in China. Data show that in January, manufacturing PMI is 51.3%, than the micro fell 0.1% last month, but for the fourth straight month stay above 51.0%, and for the same period since 2012 highs, continue steady expansion.

The national bureau of statistics survey services center senior statistician Zhao Qinghe said, influenced by the Spring Festival holiday factor, manufacturing production and market demand growth has slowed. Production and new orders index was 53.1% and 52.8%, than last month dropped 0.2 and 0.4% respectively, but the supply and demand remain stable growth. At the same time, the pace of manufacturing to the high-end continues to accelerate. And technology manufacturing PMI is 55.7% higher than last month rose 1.9%, significantly higher than the overall level of manufacturing, and accelerated expansion.

It is worth mentioning that in January, the main raw material purchase price index and producer price index for 64.5% and 54.7%, than last month dropped 5.1 and 4.1% respectively, consecutive months up first now. Especially black metal smelting and rolling processing industry the main raw material purchase price index and producer price index dropped sharply, to 59.8% and 59.8% respectively, the price rise rapidly momentum has slowed. Traffic bank's chief economist said, the recent ferrous metals, coal, oil and natural gas price highs, year-on-year decline, the price rise is expected to gradually ease. Expected industry price year-on-year peak appears in the first quarter, with declining purchasing prices of raw materials, after the industry price rise has slowed, may appear high and volatile or down slightly.

China logistics information center analyst Chen Zhongtao believe that purchase price index since last year basically continue to rise, only during the brief callback, in the year to January, has been for four months to remain high in more than 60%. But in stark contrast, the producer price index in the fourth quarter of last year to form relatively obvious rise, this year in January and reversed, down more than 4%, falling to 54.7%, nearly 10% lower than the purchase price index. This "held high" situation, if the intensified development, could affect the production enterprise expansion.

This month, in addition, there are still more than forty percent of the enterprise reflects the financial strain and insufficient market demand, at the same time, influenced by lunar New Year holiday employees focus back home, reflecting the rising labor costs and a lack of supply increased proportion of business. Zhao Qinghe said, reduce the financing cost and enlarge effective demand is still a consolidated entity economic stability in the key factors for good. Chen Zhongtao also said that in 2017 to maintain macroeconomic stability good situation, to improve the market environment, emphatically improve microeconomic vitality. On the one hand, to moderate increase total demand, increase enterprise order; On the other hand to promote the reform of the supply side, reduce the comprehensive cost of the enterprise, improve enterprise profitability. Micro energy raised, macro economic stability have a solid foundation.

Bureau of statistics released the data also show that in January, China's manufacturing business activity index was 54.6%, than edged up 0.1% last month, keep smooth and positive momentum. China logistics information center, an analyst at wuwei analysis, said rose slightly in January 2017, demand and employment stability; Inputs into the price rise rapidly momentum will rein, the robust manufacturing activity start. In 2016, the third industry of GDP contribution on economic growth and improved. This year with the public consumption ability enhancement, the improvement of the consumption environment, and consumption upgrade gradually, the manufacturing industry, especially the service industry development power will be gradually enhanced.