China's Manufacturing PMI Falls to 49.2 as Sector Contracts for Third Month
Dou Shicong
DATE:  Mar 01 2019
/ SOURCE:  yicai
China's Manufacturing PMI Falls to 49.2 as Sector Contracts for Third Month China's Manufacturing PMI Falls to 49.2 as Sector Contracts for Third Month

(Yicai Global) Feb. 28 -- Manufacturing activity in China contracted for a third month in a row in February, according to the latest official figures, as factory activity shrank to a three-year low mainly due to the Chinese New Year holiday.

The purchasing managers index fell to 49.2 this month from 49.5 in January, the National Bureau of Statistics said today. That was the lowest official reading since February 2016. A number below 50 indicates contraction.

Production slowed before and after the Lunar New Year, according to Zhao Qinghe, a senior statistician at the NBS.

The PMI for large-sized enterprises was 51.5, up 0.2 percentage points, indicating fairly good activity; small- and medium-sized enterprises had PMI readings of 46.9 and 45.3, down 0.3 and 2 points, respectively.

But total new orders, a future indicator, swung back into expansion territory, rising 1 percentage point to 50.6, suggesting a recovery in market demand, said Zhao.

High-tech manufacturing performance continued to shine, with a PMI of 51.4 this month, up 1.8 points, indicating that China's industrial structure continues to be optimized. The PMI data for drugmakers and computer electronics manufacturers led gains among high-tech firms.

The non-manufacturing business activity index remained in expansionary territory at 54.3, down 0.4 points. The BAIs for rail and air transport, telecoms, banking, leasing and construction were all above 55, signaling strong activity, while those of real estate and residential services were below 50.

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Keywords:   PMI,National Bureau of Statistics