China's May export order index improved from April
Source: ccfgroup Date: 2009-06-04
The report recently released by China Federation of Logistics and Purchasing shows that China‘s new export order index in May rose one percentage point from the previous month, to more than 50 percent, indicating the expansion of exports has accelerated. The index is a sub-item of manufacturing Purchasing Managers Index (PMI).
The Federation surveyed 700 enterprises.
PMI (Purchasing Managers Index for the manufacturing sector) reaching more than 50 percent means that May orders received by more than half of the surveyed enterprises improved from the previous month, therefore May export situation was better than April, although May exports likely show a decline year-on-year.
It is learned that the industries that received better export orders in May were garments, shoes and hats, chemical fiber, non-ferrous metals, machinery and electronics, rubber and tobacco. However, orders for the textile industry lowered than the previous month, in addition, there was no big improvement in iron and steel (ferrous metal smelting, etc.) industries.
At present, refund rate of textile and apparel exports has reached 16 percent, just 1 percentage point from 17 percent of the full export rebate rate. Industry people say that higher rebate rate has very little meaning, if there are no orders or small orders numbers, so market demand is key factors.
Earlier statistics show that China's exports in April fell 22.6 percent. However, according to the analysis of the General Administration of Customs, exports in April grew 6.9 percent from the previous month based on average working days.
The State Council held an executive meeting on May 27, putting forward six policy measures to further stabilize external demand, including: improve insurance policy of export credit; improve export tax policy to further address financing difficulties of foreign trade enterprises; further reduce burdens on foreign trade enterprises; improve policy for processing trade; support enterprises in various ownership types to go out into overseas markets, in order to stimulate exports.
