China Non-Manufacturing PMI (SA Monthly)

Purchasing Managers Index (PMI) is an index summarized and compiled through the results of the survey of enterprises purchasing managers. It is one of the leading indices which was commonly adopted by international society to monitor the macroeconomic trends, and played an important role in forecasting and monitoring. It covers every links of the enterprises, including output, new orders, new export orders, backlogs of work, output prices, input prices, suppliers’ delivery times, stocks of finished goods, quantity of purchases, stocks of purchases, employment, future output.. PMI sub-indices are the so-called diffusion indices, which are calculated based on the question on specific aspect of the enterprise’s activities. Diffusion indices are calculated as follows: SUBINDEX = (Percentage of survey respondents reporting "higherbetter") *1.0 + (Percentage of survey respondents reporting "the same")*0.5. PMI is a weighted average of diffusion indices from survey questions. The index assumes a value from 0 to 100. The threshold of PMI is usually using 50 as the cut-off point for economic performance. If PMI above 50 it reflects the overall economy is expanding; if less than 50 it reflects the overall economy is in recession.