Growth in China’s manufacturing industry has weakened. The official Manufacturing Purchasing Managers Index (PMI) of the China Federation of Logistics & Purchasing (CFLP) fell to a seasonally adjusted 52.1 points in June 2010. In May the PMI was still at 53.9 points and it was at 55.7 points in April. However, this decline started from a relatively high level. According to the CFLP’s information, an Index above 50 points indicates expansion in manufacturing business. The Index is based on surveys of 727 Chinese companies from 20 industrial sectors. The majority of these sectors – 14 in total – reported values below 50 points, which indicates a contraction in these areas.

The PMI has been recorded since 2005. It reached its low in November 2008, with 38.8 points and its peak value was achieved in December 2009 with 56.6 points.