Experts Said That We Should Be Alert To Changes In Demand And Lead To Changes In Economic Growth.

The China manufacturing industry purchasing managers index (PMI) released by the China Federation of logistics and purchasing tonight was fifty-three point three percent, down five point nine percentage points from last month's May.

In response, Zhang Liqun, a researcher at the State Council's development research center, said that from the perspective of economic operation, we need to be vigilant against changes in the economic growth caused by demand changes. This is a more noteworthy change than the price trend.

In May, in the PMI index system of China's manufacturing industry, the backlog order index, finished product inventory index, raw material inventory index and supplier delivery time index were lower than fifty percent, while the remaining indexes were all higher than fifty percent, especially the purchase price index was the highest, reaching up to seven hundred thirty nine percent.

From the change trend, compared with the previous month, except for the finished product inventory index, all the other indexes decreased, especially the composite index PMI, production index, backlog order index, new export order index and purchasing volume index decreased most significantly, with a drop of more than five percentage points, of which production index, purchasing volume index and backlog order index dropped by ten percentage points.

In the twenty industries in May, only four industries of non-ferrous metal smelting and calendering processing, tobacco products, pportation and equipment manufacturing, wood processing and furniture manufacturing were slightly lower than fifty percent, while the other sixteen industries were all above fifty percent.

Zhang Liqun believes that the change of PMI index in May lags behind the change of industrial growth slightly.

But it still shows the trend of industrial manufacturing downturn.

This is accompanied by a marked decline in production index, backlog order index, new export order index and purchasing volume index in the PMI index.

Its background should be slower export growth and slower growth of domestic investment after excluding price factors, resulting in slower growth in aggregate demand.

Demand changes began to inhibit the growth of the industrial manufacturing sector. In this connection, the purchase price index began to fall at a high level and the finished goods inventory index began to increase.

All these indicate a sign of economic growth from rising to falling.

He analyzed that the PMI index had a downward trend in May, but this year's performance is even more obvious.

Therefore, the trend of economic performance from this index change needs to be further observed.

Manufacturing PMI is a composite index, which is weighted by five main diffusion indices according to the internationally accepted practice.

Usually, the PMI index is above fifty percent, reflecting the overall economic expansion; less than fifty percent, reflecting the economic recession.