Analysis of March PMI

The main raw material inventory index was down 2 percent to 47.5 percent, staying below 50 percent for 2 months, signaling a sizable drop in the raw material inventory. Only the textile industry, chemical fiber and rubber industry, pharmaceutical industry and electric equipment manufacturing industry have seen raw material inventory growth; the indexes of 17 industries including the chemical manufacturing industry, tobacco industry and food and alcohol beverage industry were lower than 50 percent, and saw a decrease in raw material inventory.

The employed person index rose 2.2 percent to 49.8 percent, approaching the 50 percent threshold, 1.6 percent lower than the historical average, hiring of enterprises continued to drop, but at a slower rate. The index for eight industries such as the electric equipment manufacturing industry, computer equipment industry and textile industry were above 50 percent. The index for the tobacco industry and 12 other industries' stayed below 50 percent.

The supplier delivery time index went up 2.8 percent to 51.1 percent, up 2.8 percent, indicating that raw material supplier delivery times were shorter compare to February.

The main material purchasing index was 50.6 percent; dropping 4.9 percent from last month and staying above 50 percent for 7 months. The price of imported material continued to increase at a slower rate.

The production activity expectation index was 65.5 percent, 0.9 percent higher than the previous month, suggesting that manufacturing enterprises are optimistic about production for the next 3 months.