Analysis of March PMI

The Purchasing Managers' Index (PMI) of the manufacturing sector was 50.9 percent in March 2013, 0.8 percent higher than last month, consecutively staying above 50 percent for six months.

In a breakdown by enterprise size, the PMI of large enterprises was 51.4 percent, up 1 percent, remaining above 50 percent; medium size enterprises was 50.3 percent, increasing by 1.5 percent, and jumping above 50 percent; small enterprise was 49.3 percent, still below 50 percent, however it was 3.3 percent higher than last year, a 12 month high.

The eastern region's PMI rose above 50 percent to 51.3 percent, 0.4 percent higher than the national PMI; the PMI of central, western and north-eastern regions were 50.4 percent, 50.6 percent and 50.4 percent respectively, all above 50 percent but lower than the national PMI.

PMI trend of 12 months

4 of 5 sub indexes of manufacturers' PMI went up in March 2013.

The production index grew 1.5 percent to 52.7 percent, a 10 month high. This indicates increasing production activities and accelerating manufacturing activities. The automobile industry, special equipment manufacturing industry, electric equipment manufacturing industry, communication equipment manufacturing industry, iron and steel manufacturing industry and tobacco industry's PMI stayed above 50 percent, with an increase in production volume. Oil refineries, ferrous metal smelting and rolling processing industry, food and alcoholic beverages, and non-ferrous mills had PMIs of lower than 50 percent.

The new order index was 52.3, 2.2 percent higher than last month, remaining above 50 percent for 6 months, and suggesting an increasing demand in the manufacturing sector. The new order index of 15 industries, include the automobile industry, electric equipment manufacturing industry, pharmaceutical industry, communication equipment manufacturing industry, tobacco industry and textile industry have remained above 50 percent. The PMI of oil refinery, Ferrous metal smelting and rolling processing industry, and food and alcohol beverages stayed below 50 percent, their market demand having decreased. According to a survey, the new order index for exports was 50.9 percent, 3.6 percent more than the previous month, back to 50 percent. This suggests that exports of the manufacturing industry have started to recover. The import index increased 0.8 percent to 48.9 percent, remaining below 50 percent, showing a decreasing import of manufacturing raw materials.