China Composite PMI2013-2021 Data | 2022-2023 Forecast | Calendar | Historical

The Caixin China General Composite PMI tumbled to 47.2 in August 2021 from 53.1 a month earlier, pointing to the first contraction in private sector activity since April 2020, dragged down by a resurgence of COVID-19 cases in several regions. The dip in the headline index was driven by renewed falls in activity across both the manufacturing and service sectors, with the latter noting the steeper rate of decline. New work also decreased for the first time in 16 months while employment fell slightly. At the same time, inflationary pressure remained high as raw material prices were still high and measures to counter the outbreaks pushed up transportation costs, while output prices increased slightly. Finally, surveyed manufacturers and service providers were only moderately optimistic about the economic outlook.

The Caixin China General Composite PMI jumped to 53.1 in July 2021, up from June's 14-month low of 50.6, pointing to a stronger rise in overall Chinese business activity. The acceleration in activity growth came in after the epidemic in Guangdong province was brought under control, and before Covid-19 resurged in Jiangsu province. New business rose at a faster rate, albeit modestly overall, as a sharp rise in new work at services companies was partially offset by a renewed fall at goods producers. At the same time, new orders from abroad rose slightly while employment increased only marginally. On the price front, both input prices and output charges increased at faster rates. "The resurgence of the epidemic in some parts of China at the end of July is expected to hurt August's PMI readings," said Wang Zhe, senior economist at Caixin Insight Group. "The economy still faces enormous downward pressure, and we need to ensure business owners remain confident."

The Caixin China General Composite PMI dropped to 50.6 in June 2021 from 53.8 a month earlier. This was the lowest reading since April 2020, due to concerns over the epidemic situation in the export hub of Guangdong that led to a reintroduction of travel restrictions, with activity in both the manufacturing and service sectors growing at softer paces. New orders softened to a 14-month low, while employment meanwhile fell fractionally. Inflationary pressures meanwhile eased. Input cost inflation softened to an eight-month low, while prices charged went up slightly. "The manufacturing has returned to normal in the wake of the epidemic, while the services industry is still sensitive to regional resurgences," said Wang Zhe, senior economist at Caixin Insight Group. "In addition, the low base effect from last year will continue to weaken in the second half of this year. Inflationary pressure, intertwined with the economic slowdown, will still be a serious challenge.”

The Caixin China General Composite PMI dropped to 53.8 in May 2021 from a four-month high of 54.7 in April 2021. Still, the latest reading remained above the long-run trend, with both factory activity and the services sector continuing to expand. New orders rose solidly, with the rate of increase little-changed from the previous month. Meantime, employment grew for the third month running, albeit modestly. Prices data, meanwhile, pointed to the quickest rise in composite input costs since December 2016, which led to the steepest rise in output charges since February 2011. Finally, sentiment stayed upbeat. "Inflationary pressure would limit the room for monetary policy maneuvering, which could hinder the economic recovery. Some enterprises began to hoard goods in response to rising raw material prices, while others suffered raw material shortages," said. Wang Zhe, senior economist at Caixin Insight Group.