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CNCFLP Non-manufacturing PMI  
The China Federation of Logistics and Purchasing (CFLP) Non-manufacturing Purchasing Managers Index (PMI) is the monthly survey of about 4000 enterprises that is conducted jointly by CFLP and National Bureau of Statistics (NBS). The questions focus on the health of the non-manufacturing sector, with survey responses then aggregated and expressed as a diffusion index. This is calculated as the weighted sum of responses reporting an increase, no change and a decrease in the relevant variable. A reading above 50 for a diffusion index indicates that the variable has increased during the period, while a reading below 50 indicates it has decreased. Data are seasonally adjusted.

The main index reported in this PMI survey is a business activity index. A reading above 50 for this index indicates that activity in the non-manufacturing sector has expanded, while a reading below 50 indicates that activity has contracted. The survey also reports diffusion indexes for the following variables: new orders, new export orders, finished goods inventory, intermediate input price, selling price, employees, suppliers delivery time and business activities expectation.

Why Investors Care
Investors need to monitor the strength of activity in key sectors of the economy because this dictates how various types of investments will perform. By tracking economic data such as the purchasing managers' indexes, investors will know what the economic backdrop is for the various markets. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures.

The CFLP non-manufacturing data give a detailed look at China’s non-manufacturing sector, how busy it is and where things are headed. Its sub-indexes provide a picture of orders, output, employment and prices. The survey tends to have a greater impact when it is released prior to the Caixin Markit Services PMI because the two reports are correlated. China’s non-manufacturing sector has grown in relative importance in recent year as officials attempt to diversify the economy and lessen its dependence on manufacturing and infrastructure investment as drivers of economic growth.


China Federation of Logistics and Purchasing (CFLP) and National Bureau of Statistics

Monthly, usually on the first business day of the month

The previous month


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