2 March 2015
Guangdong Manufacturing PMI (2015/02)
Guangdong Manufacturing PMI weakened further to 47.0 in February 2015. Reading below the 50-point level indicates a general contraction in the manufacturing sector. All indexes (output, new orders, raw material inventories and employment) decreased except suppliers deliveries. According to Professor Chen Hongyu, an economic adviser to the provincial government, the decrease in February might partly due to the impact of the Spring Festival. However, outlook of manufacturing production is not optimistic as both the raw material inventories index and the employment index have stayed below the 50-point level for quite some time. The employment index in February, 41.1 was indeed a three-year low level.
Note: The Guangdong manufacturing PMI is a composite index based on the diffusion indexes for the five major components: output, new orders, raw material inventories, employment, supplier delivery times. A PMI reading above 50 indicates that the manufacturing economy is generally expanding; below 50 indicates that it is generally declining.