Empty apartments drive China PMIs higher

China’s latest batch of NBS PMIs are out and show no surprises. Manufacturing is struggling:

In September , the Purchasing Managers Index ( PMI ) of China’s manufacturing industry was 51.5% , an increase of 0.5 percentage points from the previous month , indicating that the manufacturing industry has rebounded.

Services, read construction, is booming:

In September , the non-manufacturing business activity index was 55.9% , an increase of 0.7 percentage points from the previous month , and has been above the threshold since March .

In terms of different industries, the business activity index of the construction industry was 60.2% , the same as last month. The service industry business activity index was 55.2% , an increase of 0.9 percentage points from the previous month . In terms of industry categories, the business activity index of railway transportation, air transportation, accommodation, catering, telecommunications, broadcasting and television satellite transmission services, leasing and business services is at 60.0% and above. Only the capital market service business activity index is below the critical point.

The new order index was 54.0% , an increase of 1.7 percentage points from the previous month , indicating that the non-manufacturing market demand has accelerated recovery. In terms of different industries, the construction industry new order index was 56.9% , an increase of 0.5 percentage points from the previous month ; the service industry new order index was 53.5% , an increase of 2.0 percentage points from the previous month .

Nothing new under the sun.

David Llewellyn-Smith
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