Accuracy Questions Prompt China to Suspend Some PMI Data

by Christopher Freeburn | August 26, 2013 10:21 am

Accuracy Questions Prompt China to Suspend Some PMI Data

ChinaFlag 300x225 Accuracy Questions Prompt China to Suspend Some PMI Data[1]China’s National Bureau of Statistics has announced that it would halt the release[2] of purchasing managers’ index data for certain sectors.

Beginning with statistics from June, some industry-specific PMI data will not be released to subscribers by the statistics bureau and the China Federation of Logistics and Purchasing (CFLP). An official from the statistics bureau said that the data samples collected from some industries weren’t large enough overcome “accidental changes” that could negatively affect investors, Bloomberg noted.

Earlier this year, the CFLP restructured its factory survey, increasing the number of companies included in the index from 820 to 3,000 and boosting the number of categories covered from 21 to 31.

Economists have frequently questioned the reliability of Chinese economic statistics.

An economist at China Everbright Securities said the the suspension of the PMI data undermined the credibility of the entire index and questioned the reasons for the suspension.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/04/ChinaFlag.jpg
  2. that it would halt the release: http://www.bloomberg.com/news/2013-08-26/china-suspended-pmi-details-over-accuracy-concerns-bureau-says.html

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