China Federation of Logistics & Purchasing cooperated with the Service Survey Center of National Bureau of Statistics of China to initiate a survey on the PMI of China’s Manufacturing Industry. Based on the statistics on Feb. 1, the PMI of China’s Manufacturing Industry in January reached 49.4%, 0.3 percentage points decreased comparing with that of December 2015. It was suggested that operation basis of Manufacturing Industry was far beyond steadiness with a weak development force.

Among the five sub-indices of PMI, the “Output Index” reduced by 0.8 percentage points comparing with that of December 2015; the “New Order Index” and “Stock of Purchases Index” reduced by 0.7 and 0.8 percentage points respectively, comparing with that of December 2015; and the “Suppliers’ Delivery Times Index reached 50.5%.

Three factors can explain the slight fall-back of PMI in Jan.

1. The driving force of production and the market supply & demand reduced due to the coming of New Year’s Day and Spring Festival;

2. It was on the crucial stage of defusing the impact of over-production and over-storage. Part of the manufacturers would reduce their production and storage on their own initiative;

3. The economic growth at home and abroad continued to slow down, bringing quite a certain degree of impact on the import & export of commodities.