In January 2014, the National Bureau of Statistics reported that China's Manufacturing Purchasing Managers' Index (PMI) stood at 50.5%, slightly lower than the previous month’s expansion by 0.5 percentage points. However, it remained above the 50% threshold, signaling continued growth in the manufacturing sector. Despite this positive trend, the pace of growth slowed due to the approaching Spring Festival, which typically affects business activity.
Looking at different enterprise sizes, large manufacturers maintained a PMI of 51.4%, down 0.6 percentage points from December but still well above the critical point. Medium-sized enterprises saw their PMI drop to 49.5%, marking the second consecutive month below 50%, while small businesses recorded a PMI of 47.1%, also remaining under the threshold.
Among the five key sub-indices that make up the PMI, most declined by 1 to 4 percentage points in January. The production index was 53.0%, still above the 50% mark but down 0.9 points from the prior month. The new orders index reached 50.9%, also above the critical point, though it fell by 1.1 points. Meanwhile, the new export orders and import indices stood at 49.3% and 48.2%, respectively—both below the 50% level for two months in a row.
The raw material inventory index rose slightly to 47.8%, yet remained below the critical point. Employee numbers dipped to 48.2%, and the supplier delivery time index fell to 49.8%, both below 50%. On-hand orders increased slightly to 45.7%, while finished goods inventory rose to 46.5%, both still below the threshold. The purchase volume index held strong at 51.0%, maintaining its position above 50% for six consecutive months. However, the price index for major raw materials dropped significantly to 49.2%, reflecting softer demand. Finally, the expected index for production and operations activities rose to 51.3%, showing improved confidence among companies regarding future performance.
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