Analyst: China Sept. Non-Manufacturer PMI Decline Normal

飞雪寒冰

The month-on-month decline in September for China's non-manufacturer purchasing managers index is normal, an analyst with Industrial Securities said, noting that the trend of steady overall economic expansion remains intact.

The one-point decline in non-manufacturer PMI to 58.9 comes in contrast to the rise in manufacturer PMI to 54.3 in September from 54 in August, the seventh consecutive month the latter indicator has remained above 50 points, the China Federation of Logistics & Purchasing said on Oct. 1.

The 50-point level represents the dividing line between expansion and contraction in purchasing. The PMI was compiled jointly by the CFLP and the National Bureau of Statistics from survey data provided by 700 companies. The manufacturer index hit an all-time low of 38.8 in November.

飞雪寒冰

A similar PMI compiled by HSBC shows a manufacturing sector decline of 0.1 point to 55 in September, while the indicator for non-manufacturers fell by 2.5 points to 58.1.  
A non-manufacturer PMI of around 60 would signal a strong expansion, Industrial Securities analyst Dong Xianan told Caijing on Oct 9.

He added that China's non-manufacturing PMI in September was far better than that of the EU or United States.

CFLP vice president Cai Jin also told Caijing that despite fluctuations in the September non-manufacturer PMI, the index remains at the relatively high levels achieved since the second quarter of 2009, "indicating vibrant business activity in the non-manufacturing sector."

But Cai added that China should work hard to increase household income and expand consumer demand to lay the foundation for further economic growth.